Tinder Is Going Public: IAC Announces Match Group IPO
The media conglomerate IAC/InterActiveCorp (IACI - Snapshot Report) announced via a press release today that its board of directors has approved the pursuit of an IPO for its subsidiary The Match Group. The popular social media matching app Tinder is a part of The Match Group, along with the well-known dating site Match.com.
Match Group Stats
The Match Group accounted for nearly 31% of IAC’s revenue in the company’s most recent quarter, generating $239.2 million of IAC’s $772.5 million total. IAC had an EBITDA of $75.2 million for the quarter including $25.9 million from The Match Group.
Back in February of this year analysts reportedly looked into the potential value of Tinder if it were to become publicly traded, and concluded that it would be unlikely for young people-who make up the core if its users- to pay to use the service. Apparently IAC is undeterred and is confident that the combination of Tinder and the other businesses operating under The Match Group is one that will be successful and profitable moving forward.
It is expected that The Match Group will issue less than 20% of its common stock according to the press release from IAC. The IPO is expected to be completed in the fourth quarter of this year.
If and when the IPO hits the market, it may be worth investors’ consideration. Chairman of The Match Group Greg Blatt believes in the company’s potential saying, “The Match Group is poised for substantial growth in the coming years. The dating industry has come a long way since its inception, but the category remains underpenetrated.”
Swipe Right on the Tinder IPO?
IAC believes that with the multitude of businesses that The Match Group has it can provide a combination of significant cash flow generation, strong margins, and meaningful growth potential. If the company is right, and The Match Group is able to provide such a combination, it will most likely be a stock that will create significant buzz from investors when it becomes available for public trading later this year.
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