Match Group really ‘has the hots’ for Bumble
In August, online dating guru Match Group – the company behind popular matchmaking services like Match.com, PlentyOfFish, and Tinder – made a play for smaller, female-friendly, rival Bumble. Now, it’s seeing whether perseverance really does pay off.
Match Group has seen its share price rise by 70% in 2017 so far
SOURCE: Yahoo Finance
Bumble is a rarity in the online dating world in that it insists women make the first move. This female-friendly platform takes the sting out of online dating for many women, and it’s becoming more relevant given the spate of recent allegations in Hollywood and the viral power of the #metoo campaign on social media. Bumble, however, did not reciprocate its giant suitor’s feelings: the company rebuffed a $450 million offer. Now, according to anonymous sources, Match has returned to the table with “well over” $1 billion in hand.
There’s no doubt that Bumble is a very attractive proposition for Match. As Tinder becomes less exclusive, college-educated millennials and students have moved on to greener pastures – Bumble. Right now, the app has 23 million users, and has made more than 850 million matches. That’s in just three years, and the pace at which these numbers is growing shows no sign of letting up.
Bumble might also move into the world of other, less lovey-dovey, social networks. The company just launched BumbleBizz, described by online tech magazine TechCrunch as “a swipe-based networking feature designed to help you find professional opportunities like jobs, mentors or just meeting new people who work in your industry.”
Still, there’s bad blood between these companies: Bumble’s founder came from Tinder, which she sued for sexual harassment and sexual discrimination. The lawsuit was settled out of court, with no admission of wrongdoing from either party. Can these grievances be put behind them, and a new union be made? Neither party was willing to comment.
Dominion holds Match Group in its Global Trends Ecommerce Fund.
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