IAC exec: Reported Tinder valuation "nowhere near the truth"

Sam Yagan, the head of InterActiveCorp's (IACI +0.7%) Match Group, confirms his company bought back a stake in Tinder from VC Chamath Palihapitya. But he adds the $5B valuation reported today by Bloomberg is "nowhere near the truth."

IAC shares have given back most of the gains they initially saw in response to the Bloomberg report, but have still soundly outperformed the Nasdaq (down 1.2%).

The company's Tinder interest is part of the recently-formed Match Group, which many think could be spun off in time.

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Comments (5)
  • FernandoArdenghi
    , contributor
    Comments (266) | Send Message
    Please read my answer to the Topeka Analysis: Why Investors Should NOT Be Enthusiastic About Tinder.


    " 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.


    Another 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.
    11 Apr 2014, 04:07 PM Reply Like
  • holdencaulfield729
    , contributor
    Comments (21) | Send Message
    Except Tinder isn't 99% guys like ChatRoulette. Tinder also isn't a livefeed for guys to beat off for the world to see like ChatRoulette was/is
    11 Apr 2014, 05:05 PM Reply Like
  • FernandoArdenghi
    , contributor
    Comments (266) | Send Message
    Please see:
    A digital marketer found a novel way to game Tinder, which led to him getting over 800 matches


    11 Apr 2014, 05:59 PM Reply Like
  • Brian Barbour
    , contributor
    Comments (1321) | Send Message
    Any investors may as well just flush their cash down the toilet.


    As an ex-tinder user, it was quite fun for a while to see what matches you get. But you get bored of it very quickly. Further, from everyone who i know who uses it and myself included, it would never be a way of dating.


    Dowloaded app. Had it for a few months. Deleted app.


    This whole idea of these crazy valuations for social companies has to stop at some point. Yes, millions may get the app and use it for a bit, but it won't last for sure.
    11 Apr 2014, 09:10 PM Reply Like
  • richmondcapital
    , contributor
    Comment (1) | Send Message
    Who cares what Tinder is worth or isn't. The question is IACI a good company or not ? Here is a company that can generate ~450mm in FCF in 2014 / 2015. Trading at 10-12x that multiple. It has growth upside from the search, and dating businesses.
    Catalysts around spin offs, Aereo and Vimeo.
    13 Apr 2014, 07:20 PM Reply Like
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