The Los Angeles holding company, MediaLab, recently purchased the Kik messaging app. The announcement was made originally though a Tweet made by Kik Chief Executive Tim Livingston, where he stated that the company signed a letter of intent. Later, Kik published a blog post, stating that the acquisition was finalized.
MediaLab is a holding company that has made similar acquisitions in the past. Previously, MediaLabs purchased other mobile apps, including the anonymous social media platform Whisper, as well as DatPiff, which is a mixtape app.
MediaLabs will also attempt to optimize the Kik messaging app. The company stated that it attempt to made Kik faster, and have far fewer spam accounts on the platform. Additionally, MediaLabs stated that it will run ads on the platform, in order to offset costs from the acquisition.
Messaging App Acquisitions
The MediaLabs Holding Company Has Purchased the Kik Messaging App
Trend Themes
1. Messaging App Acquisitions - MediaLab's acquisition of Kik, along with their previous acquisitions, demonstrates a trend of holding companies acquiring mobile apps to expand their portfolio.
2. Optimizing Messaging Apps - MediaLab's plans to optimize Kik by reducing spam accounts and increasing speed represents a trend of messaging apps improving user experiences through technology upgrades.
3. Monetizing Messaging Platforms - MediaLab's decision to run ads on Kik, along with other messaging apps with similar business strategies, demonstrates a trend of companies seeking to monetize messaging platforms to generate revenue.
Industry Implications
1. Mobile App Development - The trend of holding companies acquiring mobile apps suggests opportunities for disruptive innovation in mobile app development through mergers and acquisitions, as well as optimization and monetization strategies.
2. Digital Marketing and Advertising - The trend of messaging platforms incorporating ads points to possible disruptive innovation opportunities in digital marketing and advertising, specifically in the development of targeted ad campaigns for messaging app users.
3. Social Media Platforms - MediaLab's acquisition of Kik, as well as their previous purchase of Whisper, suggests a trend of holding companies expanding their portfolios to include a variety of social media platforms, creating opportunities for innovation in this industry.