REUTERS – Tinder is introducing a $500-a-month subscription tier called "Tinder Select". Although Tinder experienced a 7% revenue growth last year, it lags behind competitor Bumble. Despite Tinder's reputation as a hookup platform, Match isn't maximizing its revenue potential. By adopting a gamified approach similar to apps like Candy Crush Saga and Roblox, Tinder could increase its revenue. For instance, if Tinder charged a penny per swipe from its massive user base, it could surpass Match's anticipated annual revenue.
Category: Outlets – Reuters
Dutch Regulator Rejects Apple’s Objections to Fines
REUTERS – Dutch competition watchdog ACM has rejected objections by Apple against fines of 50M euros ($53M) it gave the company over failure to comply with orders to limit the dominant position of Apple's App Store. The ACM said Apple has complied with most of its demands to open its App Store to alternative forms of payment for dating apps in the Netherlands, but had not met an undisclosed third element of the conditions related to the fines.
ProSiebenSat.1 to Cut Jobs, Seeks Buyer for Dating Business
REUTERS – ProSiebenSat.1, a German media group, is planning to reduce costs and cut jobs while focusing on its in-house streaming platform Joyn. The company's CEO, Bert Habets, also announced plans to divest its online dating service, ParshipMeet Group, once it finds a suitable buyer. Habets did not rule out an initial public offering but said it was unrealistic in the current market climate.
by Klaus Lauer
See full article at Reuters
Blackstone and Bumble Are Still a Fitting Match
REUTERS – Blackstone's investment in Bumble has proved to be lucrative despite the company's decline in share price since the IPO in 2021. Blackstone bought a majority stake in Bumble in 2019, valuing it at ~$3B. Bumble's enterprise value is now closer to $4B, and Blackstone still owns 40% of its equity. The private equity firm has made back its investment and more, selling ~$2B in stock in the public offering, nabbing another $1B in a secondary offer, and receiving ~$300M in dividends. Blackstone's current stake, including a minority interest, is worth ~$2B based on public market prices.
Match Group to Lay off 8% of Its Staff as Growth Falters
REUTERS – Match Group joined a growing list of U.S. companies that are cutting jobs to rein in costs after it announced plans to lay off ~8% of its workforce, or ~200 employees, as spending on its dating apps slows. The job cuts were mainly in areas such as recruiting. The layoffs come as other tech firms, from Microsoft Corp to Amazon, shed tens of thousands of jobs to brace for a possible recession.
by Vansh Agarwal & Shreyaa Narayanan
See full article at Reuters
Match Group Forecasts Q1 Revenue Below Expectations
REUTERS – While a tough economy and a stronger dollar had also crimped its business, poor product execution at Tinder was the "significant" culprit, Match said. Dating app Hinge's business was also hit by product delays, among other headwinds. Shares of Match Group fell ~11% in trading after the bell. Match reaffirmed its 2023 revenue growth forecast of 5% to 10%. It expects revenue growth to reach double digits by the fourth quarter on increasing momentum in the second half. The company forecasts Q1 revenue between $790M and $800M, lower than analysts' estimates of $817.3M. Revenue fell 2% to $786M in Q4, also missing expectations of $787.3M. Total payers fell 1% to 16.1M.
by Vansh Agarwal & Shreyaa Narayanan
See full article at Reuters
Match Group Ups Antitrust Pressure on Apple in India
REUTERS – Match Group has filed an antitrust case against Apple with the competition regulator in India, accusing it of "monopolistic conduct" that forces developers to pay high commissions for in-app purchases. A similar dispute in the Netherlands resulted in a 50M euro fine for Apple and an agreement to allow different payment methods in Dutch dating apps. Apple says in India, 87% of apps on its App Store are those which don't pay any commissions at all.
Russian Court Fines Tinder for Data Law Violation
REUTERS – A Russian court fined Match Group 2M roubles ($33K) for an alleged failure to store user data within Russian territory. The fine follows similar steps against WhatsApp and Snapchat.
Google Faces $1B UK Trial Over App Store Pricing
REUTERS – Google faces a London trial over an estimated $1.1B damages claim after a court authorized a lawsuit that alleges Google overcharged 19.5M customers for app store purchases. The class action, which was certified by the Competition Appeal Tribunal, alleges Google abused its dominant position by charging up to 30% commission on popular apps on its Play Store, including Roblox, Candy Crush Saga and Tinder since October 2015. The European Union alone has fined Google ~8B euros in recent years over anti-trust practices.
Grindr to Go Public in $2.1B SPAC Deal
REUTERS – Grindr will go public through a merger with a blank-check acquisition firm – a deal that values it at $2.1B and features Tiga Investments CEO Raymond Zage on both sides of the transaction. Grindr said its existing shareholders would own 78% of the company after the merger, which comes two years after China's Kunlun Tech divested it for $620M due to U.S. national security concerns. While Grindr did not disclose the identities of its existing shareholders, Reuters previously reported that Zage had a 41% stake in the consortium that acquired Grindr. Zage continues to be an investor in Grindr. Tiga Acquisition, the Singapore-based special purpose acquisition company (SPAC) that will merge with Grindr, is controlled by Zage. Under the deal, Grindr will receive $284M in cash from Tiga and up to $100M in a forward purchase agreement.