Citing "numerous sources close to the situation," re/code reports InterActiveCorp (IACI +0.7%) paid just $55M to buy back an 11% stake in Tinder from VC Chamath Palihapitiya. Such a deal values the dating app at $500M - an order of magnitude less than what Bloomberg originally reported.
The site also reports IAC now owns over 70% of Tinder (founders and other employees own the rest), and controls 95% of its voting shares.
Also: Palihapitiya's is said to have sold his shares prior to the 2015 triggering of a mutual put/call option clause that would've given IAC the right to buy his stake. Thus, the deal's reported $500M valuation might not be indicative of Tinder's market value.
IAC went on a roller-coaster ride today, shooting higher on Bloomberg's report (apparently fueled speculation other investors also valued Tinder at or near $5B) before paring its gains after Match CEO Sam Yagan disputed the report's valuation figure.
For reference, IAC's current market cap is $5.66B.