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What's going on?
Tinder is going public! Well its actually Match Group, Tinders parent company. They will be asking investors to Swipe Right and buy their shares!What does this mean?
Match Group owns Tinder, OkCupid and about 45 other online dating companies around the world (it says that its ownership of so many online dating brands allows it to cross-market effectively to potential users). It filed notice over the weekend that it plans to complete an IPO (see our toparticlefor more info on IPOs) before the end of this year. Match generates substantially all of its revenue from almost 5 million paying users. For example, it charges users of Match.com (which it also owns). It is also planning to start generating more revenue from advertising on Tinder (like this campaign with Bud Light), and it has introduced premium services that users pay for (apparently you can Super Like one person a day now on Tinder).Why should I care?
- The bigger picture: It will test the struggling IPO market. As outlined in our first article today, the IPO market is in a bit of a funk right now, so it will be interesting to see if Match can buck the trend. Also filling for an IPO this week is Jack Dorseys other company, Square, which is an electronic payments company.
- Personally: Most of this years IPOs are now trading below their initial share price how will Match perform? It would appear to have the sort of growth profile that investors are looking for in young companies, but thats not necessarily a guarantee of future stock performance.
Originally posted as part of the Finimize daily email.
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