South Korean messaging company Daum Kakao has acquired social networking apps Path and Path Talk for an undisclosed amount. Path announced the deal Thursday evening.
“Nearly everything you have come to love about Path and Path Talk will remain as is,” Path CEO Dave Morin said.
While Daum Kakao isn’t a well-known company in the U.S., the messaging company is a dominant force in South Korea, where its most popular app, Kakao Talk, was reportedly installed on 93% of all smartphones in the country as of last December.
Rumors of a Path acquisition had been swirling since at least September, when reports surfaced that Apple might snap up the social network.
The five-year-old startup, which had raised roughly $77 million in funding from backers such as First Round Capital, Index Ventures and Kleiner Perkins Caufield & Byers, had long been considered on the outside as struggling. In fall 2013, Path laid off 13 employees, or 30%, of the company.
Path tried refocusing its efforts by launching the standalone messaging app Path Talk last summer, followed by Kong in April. But Thursday’s announcement proves the change in strategy wasn’t enough. Read more…