Bargain Acquisition: Hedge Fund MGG Investment Group Takes Over Spark Networks for 164K Eur

WIRTSCHAFTS WOCHE – The MGG Investment Group has acquired Spark Networks, a German online dating provider, for just over 164K euros, becoming its sole shareholder. This acquisition, sanctioned by the Charlottenburg District Court in Berlin, led to a total loss for the current investors of Spark Networks. Spark Networks, offering niche online dating services such as Edarling, Elitesingles, and JDate, has faced financial difficulties in recent years, with losses exceeding $150M since 2020, partly due to cyber-attacks and fraudulent profile registrations. The company's stock, once priced at 14.80EUR on NASDAQ, was delisted at 13c in September 2023 due to impending insolvency. Facing impending insolvency, a legal submission to the Charlottenburg District Court proposed using the StaRUG law for corporate stabilization and restructuring. This law, introduced in 2021, allows companies to avert bankruptcy through restructuring, even if it adversely affects some creditors or shareholders.