NGL, an anonymous messaging app, has been acquired by Mode Mobile, a company known for its smartphone rewards and ad monetization, marking a significant shift for both entities. This acquisition follows a controversial period for NGL.
Acquisition Details
NGL soared in popularity on the App Store since its late 2021 launch, particularly among teens for anonymous communication. However, its reputation was marred by a series of controversies. These included criticisms over sending fake messages to users and incentivizing a $9.99 monthly subscription for revealing user identities.
The sale of NGL to Mode Mobile comes after a two-year investigation by the Federal Trade Commission (FTC), which in 2024 resulted in a $5 million fine. The FTC also banned NGL from targeting its services to minors and criticized its executives for dismissing consumer complaints. As part of this transition, NGL's founders, Raj Vir and João Figueiredo, will be departing, with the remaining three employees joining Mode Mobile.
Regulatory Challenges and Impacts
NGL’s troubles began when platforms like Snapchat removed third-party apps, including NGL, due to safety concerns. The app had been implicated in a lawsuit following the tragic death of a teenager, escalating scrutiny over its operations.
NGL's acquisition aligns with Mode Mobile's strategy of leveraging digital advertising. Mode Mobile, known for the "EarnPhone," a device that rewards users through ad interactions, may signal a new direction for NGL's technological integration.
Future Directions for Mode Mobile
Mode Mobile's acquisition suggests a potential pivot in how NGL could be utilized within its reward-based ecosystem. This could integrate anonymous messaging with earning opportunities via digital ads. The integration might provide NGL a chance to reinvent itself under new leadership and business objectives.
- NGL's app increased popularity with teens since 2021.
- FTC banned NGL from minors, fined it $5 million in 2024.
- NGL founders exiting; staff to join Mode Mobile.
- Mode Mobile known for "EarnPhone," monetizes via ads.
- Snapchat had banned NGL over safety concerns.
