BBC.COM – The Court of Appeal upheld a June 2022 ruling that the average consumer would have thought Muzmatch – now Muzz – was part of Match Group, which also owns Tinder. Muzz has criticised the ruling, calling the legal action "deeply worrying for other start-ups in the dating sector". Muzz launched in the UK in 2015 as Muzmatch, a dating app specifically for Muslims. Match Group has attempted to purchase the business on four separate occasions, including making an offer of £28M ($35M), which was turned down.
Category: Match Group
Why Are Most Dating Apps So Similar to Each Other?
MAKE USE OF – Dating apps often seem similar due to several factors. Firstly, many mainstream apps like Tinder, Match, OKCupid, and Hinge are owned by the Match Group, which dictates the overall approach and design of these platforms. Secondly, the freemium model, where basic services are free but premium features are locked behind a paywall, is common across the industry, leading to similar user experiences. Mobile optimization for smaller screens and a need for a mass appeal also contribute to a uniform design language. Additionally, many users are on multiple platforms, which might make the experience feel repetitive. Lastly, the lack of a foolproof algorithm for successful matching and the apps' desire to keep users engaged leads to the use of similar gamified elements across platforms. Despite these similarities, subtle differences might make one app more suited to a user than others.
Underdog Muzz Stands Defiant Against Match Group’s Intimidation Tactics in Trademark Dispute
ARABIAN BUSINESS – Muzz, the world's largest Muslim dating app, has accused Match Group of aggressive intimidation tactics following a lengthy legal battle. Muzz recently lost its trademark in a UK appeal and was forced to change its name. Match Group is accused of using this power to intimidate other players, especially those with fewer resources for legal defense. Despite settling in the US and rebranding from muzmatch to Muzz, the UK appeal failed. Muzz has now urged the Federal Trade Commission to investigate Match Group's anti-competitive behavior. Match Group had reportedly attempted to acquire Muzz four times and subsequently filed a complaint when they didn't get the acquisition. Muzz views these actions as a calculated attempt by Match Group to maintain its dominance by litigating smaller competitors. The legal battle has been draining for Muzz, both personally and professionally, with costs approaching $2M.
Match Group to Release Q1 Results and Analysts Predict Strong Future Growth
BESTSTOCKS – Match Group is set to release its Q1 earnings data on May 2nd, with expected earnings of $0.40 per share for the quarter. Analysts have provided various ratings and price targets, with the average rating being "Moderate Buy" and an average price target of $70.38. The company's Q1 report could show progress toward growth targets and boost investor confidence in its position in the online dating market.
Malgosia Green Will Lead Match Group’s Asian Expansion
FAST COMPANY – Malgosia Green is three months away from uprooting her life in Vancouver and fully immersing herself in Singapore as CEO of Match Group Asia. She was appointed to the newly created role earlier this year by Match Group CEO Bernard Kim. Prior to taking over as CEO of Match Group Asia, Green led Plenty of Fish for five years. Malgosia Green will be focusing on expanding the company's presence in Asia, particularly in Japan, where there is significant potential for growth. ~50% of women and 70% of men in their 20s in Japan are single, according to a 2022 white paper from the Japanese Gender Equality Bureau. Green also aims to bring the Hinge app to new Asian markets in the coming quarters. It currently operates in India. Much of Green's mission is focused on Hyperconnect, the Seoul-based social media and video tech company Match acquired in 2021 for $1.73B. Part of that development will be in AI, Green says.
Institutional Investors Adjust Stakes in Match Group Amid Dating Industry Stock Turbulence
BEST STOCKS – AustralianSuper Pty Ltd, an institutional investor, recently reduced its stake in Match Group by 89.1% during Q4 2022, selling ~2M shares. Match Group has seen significant activity from institutional investors and hedge funds. True Signal created a new stake valued at $971K, Xponance saw an 11.2% growth in its holdings, and Ieq Capital increased its shares by 240.4% in Q3. Other new shareholders include Louisiana State Employees Retirement System and Calamos Advisors. As of April 16, 2023, 93.53% of Match Group's stock is owned by institutional investors and hedge funds.
Muzz Fights Third Lawsuit from Match Group and Calls for FTC Investigation
LINKEDIN – Match Group has sued Muzz (formerly muzmatch) for the third time over a patent related to digital matchmaking (Patent 666 – "Matching Process System and Method"), day after their appeal hearing in the UK. Muzz asserts that it declined Match Group's acquisition offers and has invested ~$1M in countering their legal actions. Muzz is calling on the Federal Trade Commission to investigate Match Group's dominant position and treatment of competitors.
Survey Shows 80% of Young Adults in Japan Did Not Date During the Pandemic
PRESS RELEASE – Eureka, a subsidiary of Match Group and the operator of Japan’s Pairs dating app, conducted a survey to study changes in young adults’ attitudes toward love this spring. The survey of 1,000 respondents found that 50% are eager to go on a date that would lead to a romantic relationship this spring. Additionally, 88.5% of respondents are using a dating app. Of those who were still single, 80% claimed that they did not go on a date during the pandemic.
Dating App Muzz Fights to Overturn Trademark Loss
LAW360 – Muzz (previously Muzzmatch), an online dating service aimed at Muslims, has recently found itself embroiled in a legal battle with Match Group. Match Group has accused Muzz of infringing on their trademarks by using the word "match" in their name, which they claim is causing confusion among users. However, Muzz has maintained that there is no evidence to suggest that users have actually confused the two brands. The case has now made its way to the London appeals court, where Muzz is urging the court to throw out the ruling made against them.
The Top Ten Things I Learned About Match, Tinder and Grindr at The Online Dating Investors Summit
OPW – The Online Dating (Investors) Summit was hosted by New Street Research (NSR) with assistance from Courtland Brooks. Institutional investors and Match Group / Tinder, Grindr presented. In addition Courtland Brooks had guests: 12 CEOs of leading dating companies. Mark Brooks interviewed the CEO of happn, Karima ben Abdelmalek in one session. Mark also interviewed a panel of notable CEOs, namely Joel Simkhai, Founder of Grindr and Motto, and Carsten Boltz, CEO of Online Personals Group, and Paul Rider, CEO of SALT.
Here are the top ten things I learned from the sessions with Match, Tinder and Grindr. CEOs
MATCH GROUP – Bernard (CEO) and Gary (CFO)
1. They are shooting for Hinge reaching $822m revenue in 2025, and $400m in 2023. Its around $300m now. Through global expansion and improved monetization.
2. They are rolling at HingeX at $50 a month. Hinge Plus, meanwhile, went down from $35 to $30/mo.
3. Malgosia Green (POF's former CEO) agreed to move to Asia and now heads Hyperconnect.
4. Bernard doesn't see a gap in management that requires a CEO for Tinder. He assumes both now, and will continue to do so.
TINDER
5. Claims more LGBTQ representation than any other general dating app. Has doubled in size.
6. The League inspired them to start experimenting with a $500+/mo pricepoint. Ran a smoke test and 30% are clicking through to check it out. 70% of those clicking through are under 30.
GRINDR
7. In summer 2022 they tried their first a la carte offering. 1 hour boosts were successful.
8. They will move away from ads. Currently 15% of revenue, but this will go down.
9. Ads are the thing users complain about most.
10. There is a massive tailwind for Grindr Internationally are more countries open up to them from a Government / legal perspective. i.e. more acceptance of LGBTQ
This event will happen again. Watch this space. Overall, it was a great initiative, with 18 leading CXOs in attendance, and ~40 institutional investors coming through to talk to us.
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