Chinese dating app and live-streaming video platform Momo has reached the $10 billion mark in terms of value.
Momo’s net income rose 60% to a record $129.9 million in the March quarter, and it has seen its share price increase since its initial public offering in December 2014. Its shares sold at $13.50 each at the time.
The March quarter success pushed up Momo’s market capitalisation to $10.8 billion as of June 11. For comparison, Snapchat had a market value of $16.6 billion.
The company said in a statement: “While other live-streaming platforms focus on the content of videos, Momo’s users are more interested in the people who provided the content, with the goal of establishing a connection and befriending them.”
It also went on to say that further growth in the sector is expected and will be driven by different partnerships with talent agencies who will bring in more professional broadcasters.
Momo’s chairman and chief executive Tang Yan said at a conference call recently: “The focus for the management team at this point is still to drive the organic growth in user base and business. But of course, in the general area of social and entertainment space, if there are good target companies that can help us expand along the industry value chain or help us to diversify our product lines or brand portfolios, we’re going to consider to go through M&A opportunities.”
Looking to the future, Tantan – the online dating app which was acquired by Momo last month, is now expected to be the platform’s new growth engine.
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