Momo Receives $1.9bn Buyout Offer From CEO

The CEO of Momo is looking to buy all remaining shares of the dating app for $1.9bn.

Six months ago, the company went public on the US market, raising $216m for its IPO.

This was at a valuation of $3bn.

Now the CEO of the company, Tang Yan, and a group of management-affiliates want to buy the remaining shares of the messaging app.

Yan and the investment firms want to acquire the outstanding shares for $18.90 in cash, which is a 20.5% premium over Monday’s closing price.

Yan and his affiliates already own 47.8% of Momo shares, which represents around 84% of the voting power of the company.

Momo is a location-based mobile messaging app, sometimes referred to as China’s Tinder, which is used as a social and dating app amongst its massive user base in Asia.

In their Q1 2015 report, Momo announced that they recently hit 78.1m MAU, an 83% increase compared to the year before.

The app also saw a massive 383% increase in revenue compared to the year before, exceeding their expectations by hitting $26.3m in revenue.

This increase saw Momo achieve profitability for the first time in the company’s history.

And in Q1 2015, Momo’s net income was up from a loss of $1.2m last year, to a positive income of $6.7m.