Re/code: Tinder valued at $500M in deal, IAC owns 70%+ stake

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.

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Comments (3)
  • Transcripts&10-K's
    , contributor
    Comments (1215) | Send Message
    That goes to show you how ridiculous some of these valuations are - they can change by an order of magnitude (10X!) and nobody bats any eye...
    11 Apr 2014, 07:10 PM Reply Like
  • Hendershott
    , contributor
    Comments (1776) | Send Message
    The circus going on on San Jose is about to close.
    11 Apr 2014, 07:18 PM Reply Like
  • FernandoArdenghi
    , contributor
    Comments (266) | Send Message
    Please see how a digital marketer found a novel way to game Tinder, which led to him getting over 800 matches!


    and see this article from Forbes:


    I still think: Tinder is like Chatroulette but it will collapse like Skout.
    Lots of persons want to use it, but nobody wants to pay for it.


    Innovations are not adding more bells and whistles to actual online dating sites.
    C-level executives are cooking barbecues under the water (selling smoke) and not paying attention to latest research from Academics which could be beneficial for the Online Dating Industry


    The Online Dating Industry needs Innovations, but the innovations the Online Dating Industry needs will come from only one source: the latest discoveries in theories of romantic relationships development with commitment.


    ardenghifer AT gmail DOT com
    11 Apr 2014, 08:15 PM Reply Like
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