Grindr shareholders offer to take dating app private for $3.46 billion

(Reuters) -Two Grindr board members, part of an investor group that owns more than 60% of the company, have proposed to take one of the world's most recognized dating platforms for the LGBTQIA+ community private for about $3.46 billion. Shares of the company were up over 22%. A deal would give board members Ray Zage and James Lu greater control of the popular LGBTQIA+ dating platform with millions of users in more than 190 countries, at a time when online dating companies are under immense pressure to rekindle growth. Grindr, along with industry leaders such as Tinder-parent Match Group and Bumble has wrestled with slowing user additions and rising criticism of "swiping fatigue," as younger users experiment with AI-driven and niche matchmaking alternatives. Zage and Lu originally acquired Grindr in June 2020, and led the company's public listing in November 2022. They have each served on the Grindr board of directors since the acquisition, with Lu serving as chairman during that time. The consortium has secured significant expressions of interest to participate in financing, including multiple highly confident letters and contributions of equity, and is confident that these sources will be fully sufficient to fund the acquisition, the shareholders said in a statement. "We are strong believers in the long-term outlook for the company — I have been a consistent buyer of shares in Grindr since listing, buying over $200 million of shares on the public market and am also willing to contribute additional equity to this deal," Zage said. The company's stock has been volatile since going public in 2022, trading below its debut levels for much of the last year. The offer of $18 per share represents a 51% premium over the stock price on October 10, the day prior to when shareholders first informed the company of their intention to explore a going-private transaction, they said. Grindr did not immediately respond to a Reuters request for comment. Last week, Grindr's board established a "special committee comprised of disinterested and independent directors in the event that a definitive, bona fide proposal, including committed financing, is presented to the company for evaluation," Grindr said. (Reporting by Kritika Lamba in Bengaluru and Arsheeya Bajwa; Editing by Alan Barona)

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