It was reported by Bloomberg yesterday that Kik, the popular Canadian messaging app, has been looking around for investments or even a sale, but a new report from TechCrunch has painted a slightly different picture. While the company is indeed looking into some potential fundraising opportunities and partnerships, Kik isn’t looking to get bought out.
Kik Interactive Inc., which makes a messaging application popular with young teens, is exploring a sale, people with knowledge of the matter said. The company hired Qatalyst Partners to set up conversations with potential acquirers or corporate investors in Silicon Valley and Asia, said the people, who asked not to be identified because the process is private. Kik, based in Waterloo, Ontario, hasn’t yet found an attractive deal, the people said. Kik, with more than 200 million registered users, as of January had raised about $70 million. Kik is betting that larger corporations may want to capitalize on the increasing popularity of messaging applications. Snapchat Inc. recently raised funding from Alibaba Group Holding Ltd. at a $15 billion valuation, and last year Facebook Inc. acquired WhatsApp Inc. for $22 billion. Qatalyst will help Kik network with faraway companies and find all potential options, one of the people said. The company has about two years’ worth of financing and isn’t in danger of running out of cash, the person said.
