Paltalk Buys Tinychat As Video Messaging Apps Consolidate
Summary
“We look forward to working with their team and drawing on their deep expertise and resources to exponentially grow the Tinychat audience.” Terms of the deal are not being disclosed, Eric Sackowitz, COO of Paltalk, told me via email. Tinychat, founded in 2009 before messaging apps really took off, had a cadre of celebrities among its investors, with Ashton Kutcher, Sean Combs (P. Diddy that is), Troy Carter Guy Oseary, Ron Burkle and Naval Ravikant all chipping in to a $1.5 million round in 2011. “We believe there are certain economies of scale that are necessary for this kind of technology to both grow and also be profitable, which we’ve proven out with Paltalk over the past decade.” While Tinychat will remain a separate platform for now, there are also possibilities of integrating down the road. “At this point, we plan to continue to operate Tinychat as a standalone app, just as we do Camfrog, but it’s possible that we may integrate it into Paltalk in the future,” he says. Tinychat complements that: it also has a freemium model but compared to Paltalk makes a higher proportion of sales from advertising.
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