Yahoo Finance Tinder and Hinge owner’s shares rise as activist investor Elliott builds 10 per cent stake
An activist investor is trying to turn around Match Group as the Tinder and Hinge owner faces a stock slump.
Elliott Investment Management has built a stake worth around $1bn (£786m) in Match, the parent company of several popular dating platforms, according to the Wall Street Journal.
Now it is reportedly seeking discussions with Match to revitalise the company’s performance.
As paying customers dwindle, Match’s current market cap has fallen to roughly $10bn (£7.9bn) – a significant drop from its peak of over $40bn (£31.4bn) amid the pandemic-driven surge in tech stocks.
With its market cap now sitting at $10.bn, Elliott’s stake represents just under a tenth.
Elliott’s specific demands are unknown and it is unclear whether they will nominate director candidates.
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The hedge fund is known for reshaping tech companies through activism, including at firms like Salesforce and Pinterest.
Despite being the world’s largest dating site by user count, Tinder has faced a slowdown in growth earlier than anticipated, raising concerns among analysts and investors.
Match’s third quarter results revealed a continued decrease in paying users on the Tinder app, with this expected to get worse.
A Match Group spokesperson said:”Our team regularly engages with investors, and will continue to work to create great experiences for our users and value for our shareholders.”
City A.M. was unable to reach Elliott for comment.
Match shares are up nearly 12 per cent in after-hours trading.
