Match Group Seeks to Raise up to $466M in IPO

The owner of Tinder, OkCupid and is selling about 14% of itself to cash in on the boom in online dating.
Katie Kuehner-HebertNovember 9, 2015

The Match Group said Monday it hopes to raise as much as $466.2 million in its upcoming initial public offering, valuing the owner of online dating brands Tinder and OkCupid at $3.1 billion.

Match announced in a regulatory filing that it would sell about 33.3 million shares at between $12 and $14 per share. Underwriters will have a 30-day option to buy an additional five million shares.

According to The Wall Street Journal, Match’s parent company IAC/InterActiveCorp, is seeking to cash in on the booming market for online dating. Match, which counts 59 million monthly active users, reported $888.3 million in revenue in 2014, up about 11% from the previous year.

Drive Business Strategy and Growth

Drive Business Strategy and Growth

Learn how NetSuite Financial Management allows you to quickly and easily model what-if scenarios and generate reports.

“The dating market presents a significant opportunity for Match Group,” the filing said, describing the company as “the world’s leading provider of dating products.”

Match predicts that the market of adults who are not in a committed relationship and have Internet access will increase from approximately 511 million people to approximately 672 million people by 2019.

The company said it currently sells about 2% of the ads that it could run on Tinder, but that it intends to “meaningfully increase” the number of ads it sells on the dating app. Tinder’s “strong user engagement”  9.6 million daily active users who spend an average of 35 minutes a day on the app  “makes it a very attractive platform for advertisers,” Match said in a statement.

According to the filing, Tinder had 583,000 paid members as of the end of September, six months after its launch.

Match is the second high-profile tech IPO pricing in as many weeks. Last week, Square offered just over 31 million shares at a maximum of $13 apiece for a total value of up to $403.7 million.

IAC has bought a number of dating sites over the last few years, including PlentyofFish for $575 million last month. Chairman Barry Diller’s strategy was “to build scale by acquiring a portfolio of brands  now 45 in all  and eventually spin them off under the Match umbrella,” The New York Times said.

Match, which disclosed the plan to go public in June, is selling 14% of itself in the IPO, but IAC will maintain control.