ShareChat Will Buy MX TakaTak: Indian social media platform ShareChat has entered into a deal to buy MX Takatak, the short video platform owned by Times Internet. According to a Moneycontrol report, both the companies have made this agreement for $ 600 million, including cash and shares.
The report has told that the deal value may change towards its closure. Mohalla Tech has more than 2000 employees. And with this acquisition, 180 employees of MX Takatak will join the company. The MX Takatak will be rebranded in about six months. And the target is to close the deal at the end of the month.
ShareChat Will Buy MX TakaTak
This move is expected to strengthen ShareChat’s short video play platform through Moj. With the acquisition, Moj (160 million monthly active users) and MX Takatak (150 million monthly active users) will have an active user base of over 300 million. Its local rival Josh has over 115 million monthly active users.
Good growth in the short video industry
This acquisition has come when people’s attraction towards the short video industry increases rapidly. In this, the reels of Instagram are running in the forefront. According to a Redseer report, while Facebook’s short videos and Instagram’s reels lead the market in the top 50 cities, it has rivals in India such as Dailyhunt’s Josh, Moj and MX Takatak in Tier-2 and Tier-3 cities. There is a large user base.
This has also happened at a time when many short video platforms are facing difficulties to grow. Another short video platform, Spark, is in trouble. At the same time, Friends TV has laid off some employees on another platform.
Short video platforms developed in the domestic market have multiplied in popularity recently. The reason for this is the banning of Tiktok by the Government of India in June 2020. Where Moj was launched close to the time of the ban. At the same time, MX Takatak was launched in July 2020. Josh was launched in September 2020. All these companies have seen massive growth during the last two years.