Bloomberg: IAC buys back 10% of Tinder at $5B valuation (updated)

InterActiveCorp (IACI +2.5%) has reportedly paid $500M to own another 10% of popular mobile dating app Tinder, in which it has already been reported to have a majority stake. In spite of the sky-high price tag, shares are moving higher on the news.

IAC rallied in February as Tinder usage jumped amid positive Winter Olympics-related coverage. The app currently isn't monetized; Barry Diller says ads and subscriptions are being considered, as well as the adoption of a freemium business model.

Last month, SA author High-Conviction Ideas noted Tinder is on the verge of seeing 1B profile views/day (up from just 100M last August), and that users have been spending 60 minutes/day on average.

IAC had $1.3B in cash/investments to go shopping with at the end of 2013, and $1.08B in debt.

Update: An IAC exec has confirmed a deal took place, but says the reported $5B valuation is "nowhere near the truth."

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Comments (3)
  • U2A Ventures
    , contributor
    Comments (344) | Send Message
    tinder is worth negative dollars.. this is insane.
    11 Apr 2014, 02:49 PM Reply Like
  • FernandoArdenghi
    , contributor
    Comments (266) | Send Message
    IAC buys back 10% of Tinder at USD5B valuation == Are they paying a bribe to someone?


    Tinder Has Made 1 Billion Matches == It is performing as a machine gun shooting flowers.


    A recent article at Seeking Alpha suggests "Tinder could soon start to monetize its popularity"


    Do you remember Chatroulette?
    It seems Tinder is like Chatroulette but it will collapse like Skout.
    Lots of persons want to use it, but nobody wants to pay for it.


    There is a large dotcom bubble fueled by venture investment funds, investors who are dragging other investors to continue investing until they can sell shares of the company and recover leveraged money, but the last holder of shares is going to lose.
    Many technology companies, without having a concrete business model (supposedly will generate revenue from advertising and premium subscription accounts) receive millions of dollars in funding to offer something free, acquiring fastly a large mass of captive users as if they had made them addicts, and then, the exit strategy (for investors) is to get someone to buy the company at a staggering figure, as did Blogger, Fotolog, MySpace, YouTube, Skype, Bebo and others. They are like continually inflating ballons and they need to find a buyer before they explode. If they can not find a private buyer for the entire company, the investors had the strategy of going public, to start trading its shares on the New York Stock Exchange, they turn those pieces of paper (shares) in real money, they get thousands of buyers purchasing lower small parts (shares).
    11 Apr 2014, 03:59 PM Reply Like
  • FernandoArdenghi
    , contributor
    Comments (266) | Send Message
    A new mobile application at Match ???


    Just read these 2 new articles


    IAC Q1 2014 results soon!
    Perhaps you will be surprised to see Tinder is cannibalizing Match?
    and this new application will replace Tinder when IAC decides to discretely bury Tinder, like Zerodegrees circa 2004 and others like DownToEarth.


    It seems Tinder is like Chatroulette but it will collapse like Skout.
    Lots of persons want to use it, but nobody wants to pay for it.


    Please read also:
    IAC buys back 10% of Tinder at USD5B valuation ???
    Tinder Impostors – Story of My Stolen Identity by Kristin Shotwell


    My answer to the Topeka Analysis: Why Investors Should NOT Be Enthusiastic About Tinder.


    Tinder, Chatroulette, Twitter and PlentyOfFish (POF) and tech space that is out of control


    When the IAC Personals bought OKCupid (3 years ago) for an astronomical amount of money (USD 90 million), the OKCupid team had the task to copycat Badoo, but they failed in that mission.
    IAC Personals backed Tinder instead, as the copycat of Badoo, but it seems there is a divorce between Tinder and Match just now!


    If anyone can investigate further some IAC Personals' dating sites in decadence of users, like Match, Chemistry, Meetic and MeeticAffinity?


    Perhaps some of their sites reached operating ceiling!
    24 Apr 2014, 08:48 PM Reply Like
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