THE GUARDIAN – The online dating industry is in crisis as shares fall and nearly half of all users report negative experiences with the apps. In May, Bumble ran an 'anti-celibacy' ad. The backlash to the "Bumble fumble" was swift, and the company apologized. Shares in Bumble crashed, and Match Group reported a decline in total paying users for seven quarters. According to Pew Research, nearly half of all online daters and more than half of female daters say their experiences have been negative. Also, 52% of online daters said they had come across someone they thought was trying to scam them; 57% of women said online dating is not too or not at all safe.
The online dating industry is relatively small, at several billion in annual revenues, compared with multitrillion-dollar social media tech giants, says Mark Brooks, an industry consultant and co-editor of Online Personals Watch. "People are getting wise to swiping," Brooks says. "It was deadly to old-school dating apps, like eHarmony, that took a high-integrity approach by saying, 'If you're really serious, you can answer 200 questions, and then we can do a semi-decent job of matching you with someone.'" "Mobile completely disrupted online, and it created this addictive behavior."
Nor did the development of swipe-based dating apps replace the missed connections classified ads section of a local newspaper. "It's not 'missed connections' because these are connections that were never even missed," Brooks says. The French app Happn is the closest you'll get to serendipity. At heart, Brooks says, online dating needs to get back to basics and overcome the paradox of choice.
But the pure utility of online dating is not in terminal decline, he thinks, because it allows people to get the tough questions out of the way right up front. "For people looking for long-term relationships, there will always be certain show-stopping questions, among them: Do you want to get married? Are you married? Do you have kids? Do you smoke?" he says. The goal is, as ever, what Brooks calls a BLR: a "beautiful, loving relationship."
"Chemistry is key – but looking for a long – or short-term partner, it's wise to know their sexual preferences, lifestyle, location, and religion right up front."
by Edward Helmore
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FINANCIAL TIMES – Starboard Value revealed in July that it had built a 6.6% position in Match Group. Elliott Investment Management, according to S&P Global Market Intelligence, amassed a stake of 4.5% earlier this year and got Match to add two new board members and sign an information-sharing pact. Anson Funds Management, a smaller fund, also has a stake. Activists have good reasons to push for change. Dating apps enjoyed a surge in popularity during Covid-19 but have struggled with a post-pandemic slowdown in growth. At its 2021 peak, Match was worth ~$50B. Its value now stands at just $9.3B. Bumble, which went public in 2021, is down 90 % since its IPO. Match still remains highly cash-generative, with $829M in free cash flow last year. Starboard thinks there is an upside if Match can turn around Tinder, cut costs and ramp up buybacks. The activist sees potential in Hinge. However, it also urged Match to consider selling itself if it cannot revitalize the business.
