IAC Purchases Over 10% Stake in Mobile Dating App Tinder.
The media conglomerate by the name of InterActiveCorp, who own a variety of entertainment and dating properties which include Match.com, have recently decided to take over more control from Tinder, the famous mobile dating application in which it was already one of its biggest shareholder in, according to reports from Bloomberg. IAC has purchased another 10 percent stake within the Los Angeles-based company from venture capitalist Chamath Palihapitya.
The details behind the arranged terns have not been disclosed at this time. According to Bloomberg, IAC has gave up over $500 million in transaction that values the swipe-right-to-like application at $5 billion, although other sources had suggested that the term may be much smaller then that, a meager $50 million at $500 million valuation. Palihaptiya tweeted that Bloomberg’s reported terms were really inaccurate. Tinder has declined to comment so far..
“I can confirm on the record that we did a transaction with Chamath [Palihapitiya], but [the $5 billion]valuation is nowhere near the truth,” Sam Yagan, CEO of IAC’s Match Group, told Forbes.
The 19 month old application Tinder, has launched out of IAC’s Hatch Labs, a now defunct incubator that was joint venture of IAC and mobile development firm Xtreme Labs, whose majority stakeholder is Palihapitiya. IAC paid to take over Xtreme Lab’s stake in Tinder, Bloomberg reported.
Ever since its grand debut, Tinder has quickly become on of the most dating essentials for all college-aged kids and young adults, and Bloomberg its has 10 million daily users, though Tinder has never publicized the amount of people it has gain over the years.
With Tinder, users can swipe through daters succinct profiles, right to like someone, left to ignore. When two people indicate they like each other, a match will be created and the group can start covering within the mobile application. By December of 2013, Tinder had sparked 500 million matches, and, as of a couple weeks ago, the application has arranged over 1,000 engagements or marriages, a spokespeople n told sources.
Tinder was already a Subsidiary of IAC, though co-founder Sean Rad and Justin Mateen prefer to talk about IAC as merely an investor and their insanely famous application as an independent startup. Although IAC cleary values its hot property, there’s still a huge question mark laying around on how the free applications, which is most likely draining cash from its competitor, is still making money.