MARKETWATCH – Match Group has struck a deal with activist investor Anson Funds to avoid a boardroom battle. Anson will drop its proposal to change how Match elects board members and withdraw its three board nominees. In return, Match agreed to share information with Anson and announced that Kelly Campbell, former president of Peacock, would join its board. Match also plans to let shareholders vote on switching to annual board elections starting in 2026.
Category: Reporters – Denny Jacob
Match Group Shares Drop as Spencer Rascoff Named CEO Amid Growth Concerns
MARKETWATCH – Match Group shares dropped 7.5% after appointing Spencer Rascoff as CEO, replacing Bernard Kim, amid ongoing concerns about growth. Rascoff, a board member linked to activist investor Elliott Management, emphasized execution and accountability, even committing to a $2M stock purchase. Despite exceeding Q4 revenue expectations, Tinder’s revenue fell 3.4%, with declining paying users. Activist investors, including Starboard Value, have pressured Match to improve Tinder’s performance or consider going private.
Match Group’s Q4 Earnings to Reveal Tinder’s Future
MARKETWATCH – Match Group's future depends on reviving Tinder, which has struggled with slowing user growth and declining engagement as Gen Z shifts toward real-life interactions. With shares down nearly 80% from their peak, activist investors are pressuring the company for change, including a potential buyout. While AI-backed features are being tested, they won't be a quick fix. Match expects Tinder's revenue to grow in the low single digits by 2027. Investors are closely watching whether the company can deliver on its three-year growth plan, but concerns over execution and lack of major innovation remain.
Match Group’s Q2 Revenue Growth and Tinder Concerns
MARKET WATCH – Match Group is expected to report Q2 of $856.5M, up from $829.6M last year. Earnings are projected to remain at 48c per share, with net income slightly increasing to $138.3M. Despite these positive forecasts, concerns persist about declining paying users on Tinder. Activist investor Starboard Value has acquired a significant stake in Match, urging improvements at Tinder and suggesting the company consider going private if changes aren't effective.
Grindr to Delve Into Dating as More Users Seek Long-Term Relationships
WALL STREET JOURNAL – Grindr, a dating app best known for facilitating hookups between gay men, wants to get more into dating. The app is planning to add several new features aimed at helping its users, who are primarily gay and bisexual men, match up with others with the same intentions, from short-term sexual encounters to long-term relationships. The additions include using AI to identify users with shared interests. Grindr shares are up 17% this year, while Match is down 17% and Bumble has lost nearly a third of its value. This week, Grindr raised its revenue outlook for the year to ~25% growth from ~23% growth. It also forecasts between 20% and 25% annual revenue growth through 2027, equating to ~$600M in 2027 from ~$260 million in 2023.
Match Group Stock Tumbles After Paying Users Fall Again
Dating Apps Put a Hefty Price Tag on Finding Love
Match which will roll out a superpremium tier on Tinder in the fall. "If you actually take a small fraction of our payers at higher price points, you actually get a number that's in the tens of millions of dollars on an annual basis," CEO Bernard Kim said.
Bumble CEO Whitney Wolfe Herd sees premium services delivering new opportunities. "We see that there's a lot of runway to expand there."
Even if uptake is slow, there is precedent behind the move to raise prices. Mark Brooks, CEO of Courtland Brooks, which helps online dating companies grow, said that other brands, such as eHarmony and Tawkify, have for years priced their premium services above what Tinder, Hinge and Bumble charged. The stakes are high in showing users that paying is worth it, Brooks said. Otherwise, they could defect to competing platforms. "They've got to actually really deliver on it, because they'll get crucified if they don't," said Brooks.