Thursday 20 March 2014

Alibaba invests $215m in chat app Tango

Alibaba has been keen to enter the fast-growing mobile messaging service sector

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Chinese internet giant Alibaba has invested $215m (£130m) in US-based free mobile messaging service Tango.
Tango has 200 million users and the deal is expected to help Alibaba strengthen its presence in the sector.
The mobile messaging service sector has seen robust growth in recent years and many leading firms have been keen to tap into its potential.
Last month, Facebook bought WhatsApp, one of the biggest players in the sector, in a deal worth $19bn.
"The sheer power of free communication has changed the way we connect with others," Uri Raz and Eric Setton, founders of Tango said in a blog post.
"Today, the amount of texting from over-the-top messaging apps surpasses carrier SMS."
The firms did not disclose the size of the stake Alibaba has picked up in Tango.
However, some reports indicated that the investment valued the messaging service at close to $1bn

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