Paltalk (NASDAQ:PALT) stock was soaring more than 20% in early trading after acquiring ManyCam from Visicom Media for $2.7 million. The stock has since cooled a bit, however, currently trending up about 8%.
As per an announcement this morning, Paltalk, a live-streaming and telecommunications company, acquired all asset’s related to Visicom’s ManyCam. ManyCam is a virtual camera application that allows users to sync their webcam with multiple video streaming apps simultaneously. Through the software they can also add various effects, filters, and enhancements to their streams.
Jason Katz, Chief Executive of Paltalk, had kind words for the ManyCam acquisition:
We believe that ManyCam is not only a perfect fit for our existing video chat communities, but also a great addition to other video conferencing applications like Zoom or Google Meet. ManyCam gives users the ability to have multiple camera feeds, backgrounds and effects while also enabling users to share presentations, spreadsheets, documents and much more. We believe the integration of the ManyCam software into our current application offerings has the potential to generate positive cash flow in the near term and contribute to positive EBITDA over the long term. ManyCam is a logical extension for the Paltalk and Camfrog customer base, and we believe it is an application that our existing users will be willing to pay for.
PALT Stock Soars on ManyCam Purchase
Paltalk and its host of subsidiary applications, Camfrog, and Tinychat, represent the core of Paltalk’s live-streaming software suite. Camfrog is a video chat and instant messaging client meant to connect strangers worldwide. While Tinychat is an online video chat website for people interested in a given topic.
Founded in 1998, PALT has mostly declined in its nearly 20 years in the stock market. Since it’s all-time high of $113 per share in 2011, today the company is trading for about $2 per share.
Paltalk investors may be holding out hope for an upswing given today’s acquisition. ManyCam presents an immediate slew of synergies for Paltalk’s video chat applications, that may help buoy PALT stock.
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On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.