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Viber messaging app bought by Japan's Rakuten | Viber messaging app bought by Japan's Rakuten |
(35 minutes later) | |
Messaging app Viber has been bought by Rakuten, the owner of online retailer Play.com. | Messaging app Viber has been bought by Rakuten, the owner of online retailer Play.com. |
The Japanese company will pay $900m (£540m) for the mobile application, which offers free calls and text messages from a mobile phone. | The Japanese company will pay $900m (£540m) for the mobile application, which offers free calls and text messages from a mobile phone. |
Rakuten, which also owns the Canadian e-reader Kobo, said the purchase would allow it to expand its digital content into emerging markets. | Rakuten, which also owns the Canadian e-reader Kobo, said the purchase would allow it to expand its digital content into emerging markets. |
Viber, which is based in Cyprus, has 300 million registered users. | Viber, which is based in Cyprus, has 300 million registered users. |
"This acquisition is a totally new strategy that will take Rakuten to a different level," said Rakuten's chief executive Hiroshi Mikitani. | "This acquisition is a totally new strategy that will take Rakuten to a different level," said Rakuten's chief executive Hiroshi Mikitani. |
Viber's chief executive and founder, Talmon Marco, said: "This combination presents an amazing opportunity for Viber to enhance our rapid user growth in both existing and new markets. | Viber's chief executive and founder, Talmon Marco, said: "This combination presents an amazing opportunity for Viber to enhance our rapid user growth in both existing and new markets. |
"Sharing similar aspirations with Rakuten, our vision is to be the world's number one communications platform and our combination with Rakuten is an important step in that direction." | "Sharing similar aspirations with Rakuten, our vision is to be the world's number one communications platform and our combination with Rakuten is an important step in that direction." |
'Congested market' | |
Rakuten has been on a buying spree over the past couple of years - purchasing Europe-based video-on-demand company Wuaki.tv in 2012 and online TV firm Viki in 2013. | Rakuten has been on a buying spree over the past couple of years - purchasing Europe-based video-on-demand company Wuaki.tv in 2012 and online TV firm Viki in 2013. |
Viber competes with other messaging apps such as Whatsapp, WeChat and Line. | |
Ian Maude, internet analyst at Enders Analysis, expects more deals in the sector. | |
"This is a very congested market place, with lots of growth potential," he said. | |
He pointed out that social messaging apps tend to be used a lot by younger people, many of whom do not use email, so for a company like Rakuten it gives them an opportunity to promote other products such as games to that generation. | |
Rakuten also reported that full-year net profit doubled to 43.5bn yen (£255m; $427m). | Rakuten also reported that full-year net profit doubled to 43.5bn yen (£255m; $427m). |