Tinder is going public
Online dating is going public.
IAC/InterActive, the media conglomerate run by Barry Diller, is preparing to spin out its Match unit, which includes Match.com and Tinder.
IAC owns a majority stake in Tinder, the dating app which requires users to simply swipe right to "like" another user, and swipe left to "pass."
In IAC's most recent quarter, the Match Group accounted for $239.2 million of IAC's $772.5 million in total revenues. The unit was also responsible for $25.9 million of IAC's $75.2 million in adjusted EBITDA during the first quarter.
In March, Tinder announced that Chris Payne, formerly in charge of eBay's North America operations, would take over as CEO. In February, analysts at Morgan Stanley took a look at the potential value of Tinder and concluded the company was unlikely to get young people — its core audience — to pay for the service.
Following the news, shares of IAC were up 6% in pre-market trade on Thursday.
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