Path, for those unfamiliar, is a social networking app that allows users to share photos and send messages to close friends and families, but given the stiff competition from the likes of Facebook, Twitter, Instagram, Google+, and more, it is not surprising that the app did not exactly take off the way they had intended.
So much so that the company could actually be thinking of selling itself. This is according to a report from Re/code who claims to have heard from their sources that Path could be considering a sale of itself to the company behind South Korean messaging app KakaoTalk. This would naturally benefit both parties as the acquisition of Path could allow KakaoTalk to gain a foothold in Indonesia, a market in which Path is apparently doing pretty well in.
In fact of the 30 million active users Path has, it has been estimated that the majority of them are based in Indonesia. Re/code’s sources have also revealed that post-acquisition, Path is expected to continue to operate independently. Unsurprisingly neither Path nor Daum Kakao have offered to comment on the rumor.
In some ways the acquisition would make sense for Daum Kakao. They are competing in a very competitive market where market leaders such as WhatsApp has grown to a whopping 800 million active monthly users, not to mention other messaging apps from Asia such as LINE and WeChat are starting to catch up, so by acquiring Path and gaining a foothold in Indonesia, it could be what the company needs to stay ahead of the competition.
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