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SNAP Closes Merger With Video Chat Room Paltalk

paltalk snap interactive

The merger between public dating company SNAP Interactive and video chat room Paltalk has closed.

The deal, which will see Paltalk merge with SNAP and the video chat room surviving as a wholly owned subsidiary of SNAP, was announced back in August.

The merger was structured as a stock-for-stock transaction and intended to qualify as a tax-free reorganisation.

And as a result of the merger, the former Paltalk shareholders now own a majority of SNAP’s outstanding common stock on a fully diluted basis.

With the deal, which closed on the 7th October, SNAP also intends to fully repay its 12% senior secured note in the principal amount of $3m.

Speaking about the merger, SNAP CEO Alex Harrington said: “We believe the combination of SNAP and Paltalk will drive performance improvements and present a unique opportunity to capitalize on SNAP’s strong operating capabilities and Paltalk’s proven commercial track record.

“The alignment brings together an aggregated user database of over 250 million registered users, greater scale and product diversification and a strong balance sheet.”

The combined revenues are said to be estimated at $30m, with a balance sheet of around $7.9m of collective cash and equivalents.

With the deal, SNAP plans to use the combined database to cross-sell existing products, as well as use Paltalk’s tech to build new live video product features.

The company said it gives SNAP a “next wave” product opportunity, incorporating the intersection of dating and real-time video.

In addition to this, SNAP said it creates the possibility to execute “additional acquisitions” of dating businesses.

SNAP’s Chairman of the Board Jason Katz said: “The combination of Paltalk’s best in class real-time video and chat technology with SNAP’s expertise in dating and analytics creates numerous exciting opportunities for the combined company.”

Read more about the merger here.

Simon Edmunds

Simon is the former editor of Global Dating Insights. Born in Newcastle, he has an English degree from Queen Mary, London and after working for the NHS, trained as a journalist with the Press Association. Passionate about music, journalism and Newcastle United.

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