The deal with Tango, which boasts 200 million users, forms part of Alibaba’s hopes to strengthen its presence in the mobile-messaging sector. Its move follows last months’ acquisition of one of the biggest players in the sector, WhatsApp, by Facebook in a deal valued at $19 billion.
"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."
This is an exciting time for Alibaba, with the company announcing in the last week that it intends to list the firm on the US stock market. Analysts predict that it could be the largest share offering by a technology business since Facebook’s floatation in 2012, with some predicting that Alibaba’s listing could raise as much as $15 billion.
It has not been revealed what size stake Alibaba has acquired from Tango, however rumours are that the investment values the business at just shy of $1 billion.
