Grindr, the publicly traded company behind the popular LGBTQ dating and social networking app, is close to going private.
On Friday, two Grindr board members who are also major investors offered to buy the West Hollywood company for $18 a share in cash. The offer values Grindr at nearly $3.5 billion.
The buyout offer represents a 51% premium to the company's October 10 share price. It's a sign that the dating app is facing a new inflection point as Gen Z users, tired of browsing through potential matches, turn to face-to-face interactions.
Board members George Raymond Zage III and James Fu Bing Lu are among a group of investors who own more than 60% of Grindr's outstanding shares. Lou is the chairman of the board of Grindr, and Zage is a member of the board.
“We acquired Grindr in 2020 and have been focused on building a world-class management team that will be focused on improving the product for the community that Grindr serves,” Zage said in a statement.
Debt and equity investors have also expressed interest in participating in the transaction, according to the investors' press release.
Founded in 2009, Grindr has grown into a popular dating app used by gay, lesbian, bisexual, transgender and queer men. While Grindr is well known for its hookups, it also offers its users ways to make friends, network professionally, and even gather travel tips. The company went public in 2022 and has nearly 15 million monthly active users.
But Grindr is also struggling to live up to Wall Street's expectations. Shares of the company, which makes money from subscription fees and advertising sales, fell sharply in March after… company earnings for the fourth quarter and its 2025 profitability forecast missed estimates.
Last week, Grindr confirmed that a special committee of its board of directors had received a buyout offer. According to the agency, the committee is reviewing the proposal together with legal and financial consultants. press release from the company.
Grindr shares soared after the announcement, rising nearly 19% on Friday. On Monday morning, the company's shares fell more than 4% to $14.45 per share.
