Google is looking to acquire social media startup ShareChat at a reported valuation of over $1 billion
Google is reportedly holding preliminary talks with Bengaluru-headquartered social media startup ShareChat for a likely acquisition at an estimated valuation of around $1.03 billion. According to a report in The Economic Times, both ShareChat and Google have signed a non-binding proposal and appointed investment bankers to take the talks forward. Google has already begun conducting the due diligence of the startup. The report said that if the deal fructifies, the founders of ShareChat may hold a small stake in the company post the transaction with Google.
Google is quite keen to expand further into the Indian market especially in the area of India languages. This has been the strong point of ShareChat.
On the other hand, social media business is very capital intensive as there significant costs involved to buy music rights and payments to social media influencers, besides this already being a very crowded market. This is where Google is expected to provide that heft to ShareChat.
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ShareChat has cumulatively raised $650 million till now and its valuation accordingly stands at around $650 million.