Tencent injects funds into Kik Interactive Inc.!
Tencent is the largest internet company in China, as well as the owner of QQ and WeChat messaging apps, has decided to invest into Kik Interactive Inc. The situation looks rather strange, but both WeChat and Kik are regionally popular communication clients. They’re practically rivals, to be honest. It is most likely that Tencent has some serious intent to reach out beyond Asia and start a global expansion. But why start with Kik?
Ted Livingston comments on the situation
Yesterday, August 18, an official comment was posted on Kik’s blog on behalf of the company founder Ted Livingston. Kik Interactive Inc. CEO confirmed that Tencent really did invest 50 million dollars in the project. The company plans on using this money to double its staff size (there are currently 30 people working at Kik, who oversee an audience of 240 million users) and enter a new stage of development.
Livingston had a few enthusiastic things to say about WeChat, and among them there were a couple of valid reasons that pushed the Canadian company to make such a deal.
Why would Kik need Tencent’s help?
The reasoning is simple: Kik’s partnership with the giant Tencent will help the former become more market competitive. For quite a while, the company believed that it can manage on its own, but ascending to a new level requires significant support, including financial.
The decision to bring in a sponsor was fully made by Kik. Livingston has been looking for a company to aid his product for a long time. In truth, Tencent was on top of this list from the very start.
- First of all, because the Chinese company has some popular communication apps to brag about, meaning that it knows a thing or two about the specifics of this business.
- Secondly, Kik and Tencent share a common interest: both want to conquer the US market and both lack the resources to do so independently. But, as we all know, two heads are better than one.
- Thirdly, Livingston said that Kik Interactive Inc. and Tencent have similar values and views on development. Ted Livingston is confident that the market will go to whichever app provides users with a real solution to their problems. We all want quick and easy communication, to hail cabs and make payments with no unnecessary actions. WeChat gives its users such a possibility. And now we have Kik with its desire to transform into a multiplatform.
Apparently, Kik Interactive Inc. isn’t intimidated by competition. The company realizes that the North American market won’t appreciate the Chinese product in its current look. But the introduction of similar functions to a well-known and beloved messaging app may just do the trick of attracting US’s teenagers and young adults.
Livingston also noted that Tencent isn’t the only company that thinks like this. Snapchat, Facebook, LINE and Telegram share the same goals.
Well, let’s hope that Kik will not regret this decision and that Tencent will not aggressively impose its vision on the young and ambitious team.