China's Tencent to Takes $50 Million Stake in Messaging App Kik

News - (on August 19, 2015 02:40 AM)

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KiK to Emulate WeChat's Success


China's largest and most used Internet service portal 'Tencent' has taken a $50m (£32m) stake in Canadian mobile messenger Kik Interactive to emulate WeChat's success.


Kik is in competition with other messaging services like Whatsapp, Facebook Messenger app, Snapchat etc. However, with the large stake of Chinese internet giant, Kik hopes to boost competitiveness and emulate WeChat's success in North America.


For those who are not well informed, Tencent is a Chinese firm with a focus on internet products. The company mainly focusing China's most popular messenger service WeChat. With having stakes in Ontario-based Company Kik, the growth of WeChat messenger is expected.


Kik is already very popular in America. Almost 40% of the US teenagers use Kik on their smartphones and iPhones. With 240 million users around the world, according the Company, 70% of its are between 13 and 24 years old, which could be considered great number to represent teenagers.


"Young Americans are a large group with unmet needs. We can't think of a better group to be building for," said Ted Livingston, founder and chief executive of Kik.


However, according to Livingston, the partnership between Tencent will not only value WeChat, but is also expected to boast Kik, as WeChat allows users to integrates options like shopping, ordering taxis and playing games along with messaging service.


"It was clear they understood chat deeply, making them a great sounding board," Livingston said in a blog post.

 


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