Queer from West Hollywood Grindr dating app could soon go private after its chairman filed for a buyout and stepped down from his position.
James Lu, who served on Grindr's board of directors for more than five years, said last week that he was stepping down to focus on his personal business. In October, Lu and fellow board member Ray Zage made a proposal to take Grindr private in a deal valued at nearly $3.5 billion.
Lu and Zage jointly own 60% of Grindr's outstanding shares. offered to buy the rest is $18 cash. The shares were priced at about $15 each in afternoon trading Monday.
“My decision to resign from the board of directors is not a reflection of my views on Grindr,” Lu wrote in a letter to board members announcing his resignation. “I remain optimistic about Grindr's long-term prospects, as evidenced by the proposal and my desire to take the company private to refocus it and pursue opportunities to grow the business.”
Lu and Zage said they are interested in closing the deal in the first few months of 2026. The pair led the company's November 2022 initial public offering.
In October, the council formed a special committee to respond to the objectionable privatization proposal. Located in Manhattan Beach sneaker company Skechers and Los Angeles-based fashion brand Guess have also been sold privately this year.
“There can be no assurance that this proposal will result in a transaction or any other strategic outcome,” Grindr said in an Oct. 24 post.
Grindr released its latest earnings last week, reporting total third-quarter revenue of $116 million, up 30% year over year. The company's quarterly net profit was $31 million.
Grindr executives said 2025 was the company's strongest year in terms of profitability and engagement growth. Other popular dating apps, including Tinder and its parent company Match Group are struggling to retain users.
Meanwhile, in Los Angeles, several dating app startups have flooded the market and are hoping to attract users with creative approaches to online connections.
Grindr shares are down more than 15% this year.
In his letter to board members, Lu said his buyout proposal values the shares “at a significant premium for shareholders.”
