Match group (NASDAQ: MTCH) would be a perfect candidate for one of his online dating apps. He apparently can’t stand the idea of being single.
Owner of Tinder, OKCupid, Hinge, and of course his own namesake dating site, Match is set to be spin off from technology holding company IAC / InterActiveCorp, which regularly incubates companies and then frees them. However, Bloomberg reports that Match has already approached Dating group (NASDAQ: MEET) to be acquired. Sometimes being alone can be scary.
Lots of fish in the sea
Although Match is the largest dating site, the entry of Facebook on the stage changed the dynamics. Although there is no guarantee that the the social networking site will be successful, some of the remaining dating companies are looking to hook up to counter it. Bumble owner MagicLab has sold a controlling stake in his business to Blackstone Group while Match itself has acquired some 25 companies over the years.
There have been concerns about how Match would handle single life. IAC is emptying about $ 1.7 billion in debt on the dating site, which would be on top of the $ 1.6 billion it already carries. And when he announced his results earlier this week, he fell short of expectations and blamed Apple which makes it easy to cancel a subscription – essentially swiping left on the app, if you will.
Fourth-quarter revenue grew 20% year-over-year to $ 547 million, but was lower than forecast by $ 553 million, and he said first-quarter revenue would be between $ 545 million and $ 555 million, lower than Wall Street’s forecast of $ 562 million.
Match Group shares rose more than 7% following the takeover rumor.
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