South Korea-based Daum Kakao has acquired social networking app Path and messaging app Path Talk as part of its global expansion efforts.
On Friday, May 29, Daum Kakao announced the acquisition of Path and Path Talk.
"We created Path as a network that brings users a source of happiness, meaning and connection," said Dave Morin, co-founder and CEO of Path.
Path has more than 10 million active users. However, the company revealed that it needed more resources for it to grow further. Morin added that Daum Kakao has great experience in the Asian market and the Korean firm may take Path to a different level.
"Path's strong user base in the fast growing Indonesian market makes it a powerful candidate for growth into a mobile lifestyle platform with rich services that impacts users on a daily basis," said Alex Kim, head of Daum Kakao Indonesia.
Kim added that Path has a huge potential in the global market and a synergy with Daum Kakao will provide greater value to customers.
Messaging apps are getting quite popular among people who use smartphones. The option to send text messages as well as media files such as images, voice, video and more has diverted many users from SMS to other messaging apps.
WhatsApp, SnapChat, Line, Kik and more are some of the most popular messaging apps that are used by millions of people worldwide.
Path Talk has a sleek user interface and initially attracted many users. However, the service failed to keep up with stiff competition from Instagram, Facebook and others. Daum Kakao has about 48 million users and the majority are based in South Korea. Path Talk may soon see many of Daum Kakao customers joining the service.
The Korean company also has a messaging app called Kakao Talk that was launched way back in 2010. Kakao Talk did well in the local market; however, the company's plans to expand in other nearby countries were halted due to the presence of competitors such as Line and WeChat.
Daum Kakao will also benefit from the latest acquisition of Path Talk. More than 50 percent of the messaging app's users are based in Indonesia. The Korean company has been trying to make its way to other Southeast Asian countries in the last few years. With the help of Path, Daum Kakao will be able to make a move in Indonesia and maybe to other nations as well.
