For Path to truly grow, we need more resources and a larger local team that deeply understands Southeast Asian markets, says CEO Dave Morin
We first reported that Path was in talks in to sell Path Classic, its original social networking app, to South Korean tech company Daum Kakao, which owns messaging app KakaoTalk a month ago.
Today, Dave Morin, CEO and Co-founder, Path confirmed the acquisition of Path and Path Talk by Daum Kakao in a post on Path’s official blog.
Morin said that the company had reached an inflection point, where an acquisition seemed necessary in growing the app’s presence in Southeast Asia.
“We have reached a tipping point on our journey and for Path to truly grow, we need more resources and a larger local team that deeply understands Southeast Asian markets,” he said in the blog.
The exact terms of the deal have not been disclosed.
Kong, a GIF selfie app released by Path in April, will continue to operate under Path Inc.
Path has secured more than US$75 million in funding to date. Google was reported to have offered to buy the company for US$100 million, but the offer was declined.
Re/Code had earlier reported that KakaoTalk has been spending supposedly tens of millions of dollars in trying to acquire marketshare in Indonesia, as more of the archipelago’s 250 million population comes online.
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Acquiring Path appears to be a strategic move as the app is hugely popular among Indonesia’s almost 60 million smartphone owners.
Founded by former Facebook and Apple employee Dave Morin in 2010, Path claims to have 30 million registered users, with more than five million daily active users.
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