Seeking Alpha

IAC buys dating service HowAboutWe

  • InterActiveCorp (NASDAQ:IACI) has bought a portion of online dating startup HowAboutWe, including its core HowAboutWe Dating matchmaking/date-suggestion service. Terms are undisclosed.
  • The purchase doesn't include the HowAboutWe Couples service (offers pre-planned dates for couples). A portion of HowAboutWe's employees will be joining IAC.
  • HowAboutWe joins a stable of IAC's online dating assets headlined by Match, OkCupid, and a reported 70%+ stake in fast-growing Tinder.
  • Last December, IAC placed its dating properties, along with Tutor.com and DailyBurn, into a new operating unit called the Match Group. That move has fueled speculation a spinoff/IPO is in the pipeline.
Comments (9)
  • FernandoArdenghi
    , contributor
    Comments (155) | Send Message
     
    From
    OPW and Crunchbase
    http://bit.ly/1nYSlfm
    http://bit.ly/1nYSlfp

     

    HowAboutWe received over USD22 Million as venture capital.
    A comment at OPW from "Jeff R said...
    Lets be honest - they agreed to pay the bills, take over the business and hire 5 people...not exactly an "acquisition" "

     

    Do you remember
    the SmartDate
    http://bit.ly/1nYSj7p
    and
    LikeIt
    http://bit.ly/1nYSlfs
    cases?

     

    It seems VC investors agreed to show a big success, and no more failures.
    They should show HowAboutWe as successfully sold to IAC, not closed as SmartDate or LikeIt!

     

    How much had the IAC paid for HowAboutWe?
    Every time the IAC acquires a big online dating site, it is like if they were paying a bribery to the VC investor who had previously invested in that big online dating site.
    15 Jul 2014, 01:24 AM Reply Like
  • FernandoArdenghi
    , contributor
    Comments (155) | Send Message
     
    As per "In the real transaction, which happened quickly several weeks ago, well-known Silicon Valley investor Chamath Palihapitiya sold his 11 percent stake in Tinder to IAC for about USD55 million."
    http://bit.ly/1nBjpUy
    http://bit.ly/1oCqdh9

     

    It was just exactly done BEFORE the famous "Tinder Lawsuit" was filed.

     

    "Tinder Drama" is like a "Chernobyl nuclear power plant accident" in Silicon Valley!
    It will be remembered for years.
    My bet: the IAC will "discretely bury" Tinder soon, it will absorb it and merge with Match mobile (with Stream and Mixer features) as soon as possible.
    http://bit.ly/1nBjmYX
    15 Jul 2014, 01:32 AM Reply Like
  • Mada Media Research
    , contributor
    Comments (48) | Send Message
     
    IAC will absolutely NOT "discretely bury" Tinder.
    15 Jul 2014, 02:28 AM Reply Like
  • FernandoArdenghi
    , contributor
    Comments (155) | Send Message
     
    Please see:
    Barry Diller Stands Behind Tinder and Its CEO
    http://bit.ly/1r0OPVD

     

    Why this Tinder fan deleted her account
    http://bit.ly/1r0OPVF

     

    Popular Dating App Facing Lawsuit
    http://bit.ly/1r0OPVH

     

    From
    http://seekingalpha.co...
    "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 USD500M valuation might not be indicative of Tinder's market value."
    http://on.recode.net/1...

     

    My guess:
    That VC investor who prematurely sold its stake for USD55 million, knew in advance that the famous "Tinder Lawsuit" was going to be filed. Perhaps the IAC was secretly negotiating a severance with Ms. Wolfe, and failed, then "Tinder Lawsuit" exploded a la Chernobyl.
    The Tinder Lawsuit seems to be a case of illegal/illicit association between
    2 Tinder cofounders
    AND
    the CEO from the Match Group
    to displace/fire another cofounder (Ms. Whitney Wolfe)
    It is a very serious issue many journalists are not paying the attention it deserves.
    15 Jul 2014, 06:09 AM Reply Like
  • Mada Media Research
    , contributor
    Comments (48) | Send Message
     
    The lawsuit is not nearly as serious as you make it out to be. Tinder was started in-house at IAC's idea lab. Thus, the co-founders most likely do not own a significant part of Tinder. The VC sold his shares because IAC had the right to buy them in 2015 anyways, and the VC thought he could get a better deal. IAC (and most analysts) think Tinder is worth over $500 million. Do you really think that IAC would "discretely bury" something that is extremely popular and worth over $500 million?
    15 Jul 2014, 09:43 AM Reply Like
  • FernandoArdenghi
    , contributor
    Comments (155) | Send Message
     
    Tinder like the other social discovery / social dating IAC's owned and operated application named Twoo, are marketing tools to migrate free users to Match/ Meetic and make them pay there.
    It also seems other social dating applications are decaying like Badoo, Zoosk (planning 2014 IPO), Skout, Twine, AreYouInterested, etc.
    When the IAC Personals bought OKCupid (3 years ago) for an astronomical amount of money (USD 50 - 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.

     

    My bet: Tinder is like Chatroulette but it will collapse like Skout. No way to successfully monetize it. Lots of persons want to use it, but nobody wants to pay for it. The IAC will extract the juice from Tinder, migrate users; merge them with Match mobile with Stream and Mixer features.
    Do you remember ZeroDegrees circa 2004? It was a mixture of Facebook and LinkedIn. It was acquired by IAC (NASDAQ:IACI), then in less than 2 years was "discretely buried", from one day to another it disappeared.

     

    If anyone can investigate further some IAC Personals' dating sites in decadence of users, like Match, Chemistry, Meetic and MeeticAffinity?
    http://bit.ly/1d3ZZSq
    http://bit.ly/1d4020G
    http://bit.ly/1d3ZZSt
    http://bit.ly/1d3ZZSx
    http://bit.ly/1d3ZZSz
    http://bit.ly/1d3ZZSB
    http://bit.ly/1d3ZZSD

     

    Perhaps some of their sites reached operating ceiling!
    15 Jul 2014, 04:06 PM Reply Like
  • FernandoArdenghi
    , contributor
    Comments (155) | Send Message
     
    Please see:
    Symantec Official Blog report July 2014: "Tinder Spam: A Year Later, Spammers Still Flirting with Mobile Dating App"
    http://bit.ly/1oIz8xH
    "One year ago, we warned users about one of the first instances of adult webcam spam on the up-and-coming mobile dating application Tinder. We also warned about an impending flood of spam bots once an Android version was released. Now, a year later, we have observed a number of different spam campaigns using fake profiles to flirt with users of the service."

     

    also via Global Dating Insights
    http://bit.ly/1oIz8xI
    16 Jul 2014, 01:32 PM Reply Like
  • FernandoArdenghi
    , contributor
    Comments (155) | Send Message
     
    IAC (NASDAQ:IACI) bought European online dating site FriendScout24 via Meetic Group.
    http://bit.ly/WhTPda
    It was on sale this month:
    http://bit.ly/WhTNlm

     

    Also via OPW
    http://bit.ly/WhTNln
    18 Jul 2014, 10:01 AM Reply Like
  • FernandoArdenghi
    , contributor
    Comments (155) | Send Message
     
    and also: OkCupid lied to users about their love matches, calling it an “experiment”
    http://bit.ly/1oJymo7
    http://bit.ly/1oJyp3f
    OkCupid (fully owned by IAC nasdaq:IACI) told people who weren’t compatible that they were a romantic match, as an A/B test to see if users bought it.

     

    On Monday 28th July 2014, OkCupid co-founder Christian Rudder told the world – surprise! – just like Facebook, the company has been experimenting on its users. The gist of the post was, “You know how mad you were at Facebook? Well we did it too!”

     

    Do you remember the "Why You Should Never Pay For Online Dating" article ?
    http://bit.ly/1oJyJz5
    30 Jul 2014, 03:29 AM Reply Like
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