Two Chinese social media apps, Momo and Tantan, have said yes to a "marriage," creating an online dating giant.
Nasdaq-listed Momo will buy China's tinder-like Tantan for 601 million US dollars in cash and 5.3 million US dollars in shares, according to a Friday statement from Momo.
"In one deal we're creating the only player left in China's dating app market," said Jeremy Choy, head of M&A at China Renaissance, a financial advisory involved in the deal.
Momo has 94.4 million monthly active users, according to investment bank Jefferies. It invested over half of its cash reserves in the deal, and valued Tantan at totally 735 million US dollars.
Founded in 2015, Tantan is the young generation's top choice for finding relationships, with over 3 billion matches made online. It adopted a product strategy focusing on the customer experience of female users.
"…this acquisition enriches our product line in the social space. We will continue to invest and incubate more sub-brands to serve the social and entertainment needs of different demographics," said Yan Tang, chairman and CEO of Momo.
"The acquisition is a critical strategic upgrade to cover a greater range of user demographics and needs, and build up a larger social networking market through complementary businesses and strategic synergy," said Yu Wang, chairman and CEO of Tantan.
The matrimony is expected to be completed in the second quarter of this year, and will keep Tantan's management and ensure its independent operations.