VIBER MESSAGING APP BOUGHT BY JAPAN'S RAKUTEN

Messaging app Viber has been bought by Rakuten, the owner of online retailer Play.com.

The Japanese company will pay $900m (£540m) for the mobile application, which offers free calls and text messages from a mobile phone.

Rakuten, which also owns the Canadian e-reader Kobo, said the purchase would allow it to expand its digital content into emerging markets.

 Viber, which is based in Cyprus, has 300 million registered users.

"This acquisition is a totally new strategy that will take Rakuten to a different level," said Rakuten's chief executive Hiroshi Mikitani.

Viber's chief executive and founder, Talmon Marco, said: "This combination presents an amazing opportunity for Viber to enhance our rapid user growth in both existing and new markets.

"Sharing similar aspirations with Rakuten, our vision is to be the world's number one communications platform and our combination with Rakuten is an important step in that direction."

'Congested market'

 

Rakuten has been on a buying spree over the past couple of years - purchasing Europe-based video-on-demand company Wuaki.tv in 2012 and online TV firm Viki in 2013.

 Viber competes with other messaging apps such as Whatsapp, WeChat and Line. Ian Maude, internet analyst at Enders Analysis, expects more deals in the sector. "This is a very congested market place, with lots of growth potential," he said.

He pointed out that social messaging apps tend to be used a lot by younger people, many of whom do not use email, so for a company like Rakuten it gives them an opportunity to promote other products such as games to that generation. Rakuten also reported that full-year net profit doubled to 43.5bn yen (£255m; $427m).

BBC