SNAP Interactive Announces Merger With Video Chat Room Paltalk

Public dating company Snap Interactive is looking to merge with the creators of video chat room Paltalk.

Snap has announced it has entered a non-binding letter of intent with Paltalk’s owners, A.V.M. Software.

The proposed deal, the full details of which have not yet been disclosed, would see Paltalk merge into a wholly-owned subsidiary of Snap.

With this move, Paltalk stockholders would be given Snap shares after the deal was completed.

The purpose of the merger is said to be to “enhance liquidity” to help facilitate future growth by boosting Snap’s portfolio and operations.

Paltalk is a video group chat service that lets users start video, voice or text group chats on mobile & desktop.

The platform was founded in 1998 by A.V.M. Software, a Jericho, New York-based company created by Jason Katz that also released Firetalk.

The merger with Snap comes after the dating company announced a poor set of second quarter results.

Snap reported total revenues of $2.6m, an 18% decrease compared to 2015, the result of a 20% decrease in revenue from subscriptions.

Since the end of 2015, the company also saw a drop in active subscribers, numbers falling from 98,000 to 78,700.

The deal is still subject to a definitive agreement and stockholder and board approvals.

We will update with more details as they are announced.