The point of Tinder is to find a match, and now its owner IAC/InterActive is looking for love on Wall Street.
The Barry Diller-owned company announced today that it’s spinning off its collection of online dating websites, Match Group, into a separate publicly traded company by the end of the year.
Consisting of Tinder, OKCupid and Match.com, the unit is IAC’s most profitable. Last year, the websites and apps raked in $897 million in revenue, a spike of 11 percent year-over-year, reports Recode. (Bizarrely, The Daily Beast, test-prep website The Princeton Review and Investopedia also reside under the Match Group banner.)
IAC has been looking to turn Tinder, its explosive dating app which matches 22 million users every day, into a moneymaker. Earlier this year, the app added a premium version, Tinder Plus, for $9.99 a month and introduced ads. OKCupid and Match.com also have ads and a bevy of pricing tiers.
“It’s a great opportunity to recoup some value from those assets while paring the core IAC business back to other assets,” said Jan Dawson, a chief analyst at Jackdaw Research. Dawson pointed to Ask, About.com and Vimeo, saying those companies are profitable enough to “still be in good shape.”
“So it’s something of a win-win, and obviously IAC is going to retain the majority of ownership in the Match Group even after the IPO, so it gets to benefit as that business continues to grow,” said Dawson.
IAC said it will issue less than 20 percent of its common stock in the IPO with it holding the rest. Shareholders will be able to swipe right (or left) in the fourth quarter when the offering will be held.
The Washington Post invests in climate coverage as its team expands to over 30 journalists
The Post's climate team continues to expand as the publisher makes big bets on the beat drawing younger audiences.
Inside one media company’s strategy to monetize the Fifa World Cup
Soccer media business Footballco has spent most of 2022 trying to make hay while the sun is shining.
Publishers continue to evaluate cost-cutting in Q4, with economic and budgetary pressures mounting
The wave of cost-cutting measures in Q3 is still flowing into Q4, with publishers under pressure to keep expenses down at a time of continuing economic uncertainty and budget planning.
SponsoredHow brands are measuring incremental performance on CTV
Connected TV is unique among other advertising channels because it combines linear television’s storytelling capabilities with digital marketing’s targeting and measurement. As more marketers leverage CTV advertisements to reach relevant and engaged audiences, they also want to understand the real value they are generating with their investment. Incrementality reporting and measurement allow advertisers to measure […]
Member ExclusiveMedia Briefing: Publishers’ Q3 earnings reports show promise, but not without sacrifice
Publishers' third quarter earning reports are in.
A new entrant in the data-driven linear TV measurement space aims to fill a gap left by Microsoft’s Xandr
As Xandr shuts down its Clypd platform, datafuelX's M3 SaaS product aims to solve some of the multi-currency, multi-platform problems with investing in convergent TV today.