Could Grindr Go Private? Inside the $3B Buyout Talk

Grindr could soon disappear from Wall Street’s spotlight. The LGBTQ dating app’s two largest shareholders—billionaires George Raymond Zage III and James Lu—have raised $1 billion in financing to explore taking the company private in a deal that would value it at around $3 billion. According to a recent Forbes Asia report, the proposal aims to buy back remaining shares at a minimum of $15 each.

The funding, revealed in an October 14 regulatory filing with the U.S. Securities and Exchange Commission (SEC), represents a preliminary and conditional step toward a full buyout. While the filing didn’t name the lender, reports from Semafor indicate that New York–based Fortress Investment Group may be backing the deal.

Zage says the transaction could close by the end of the year—if the duo’s ownership stake reaches the 90% threshold required to delist from the New York Stock Exchange. Lu, who serves as Grindr’s chairman, confirmed that the board has already been informed of their intentions.

Currently, Zage and Lu control about 64% of Grindr. Their decision follows reports that Singapore-based SeaTown, a unit of Temasek Holdings, seized and sold some Grindr shares after one shareholder defaulted on a loan. The move may have accelerated the buyout talks, with Lu himself selling 1 million shares to Zage worth roughly $13.2 million and another 300,000 shares on the open market.

Why Grindr’s Leaders Think It’s Undervalued

Despite the buzz around the potential deal, Grindr’s market performance has been mixed. The company’s shares have fallen more than 20% this month, even as it reported a 25% year-over-year rise in second-quarter net profit—to $17 million. Last year, the company posted a net loss of $131 million due to accounting adjustments on its warrant liabilities, though annual revenue grew 33% to $345 million.

“We think the company is significantly undervalued,” Lu told Forbes Asia. “There are many things happening with the company that we are super excited about. We are bullish about the company’s future.”

Zage added that Grindr’s recent share decline was largely due to market perceptions that the company missed analyst expectations. But since Grindr doesn’t issue quarterly guidance, he believes the selloff is based more on speculation than performance. “I haven’t seen any negative change in the outlook for the business,” he said.

What It Means for the Future of Grindr—and Its Users

Zage’s path to this point has been strategic. After leading Farallon Capital’s Asia division, he founded Singapore-based Tiga Investments in 2017. Three years later, he joined forces with Lu—cofounder of U.S. buyout firm Joffre Capital—and entrepreneur J. Michael Gearon Jr. to acquire Grindr for $608 million. They then merged the company with Tiga’s special purpose acquisition firm in a $2.1 billion deal that took Grindr public in 2022.

When Grindr’s stock debuted, it surged over 200%, briefly valuing the company at more than $2 billion and placing Zage among Singapore’s 50 richest individuals. But shares have since fallen about 65% from that peak, leaving some investors wondering if the public market’s volatility is holding the company back.

For users, the story isn’t just financial—it’s about stability and innovation. Going private could give Grindr more freedom to experiment with features, redesign the app experience, and invest in user safety without the pressure of quarterly earnings. Public scrutiny can sometimes slow a platform’s ability to take creative risks or shift business models quickly.

Launched in 2009 as one of the first location-based dating apps for gay men, Grindr has evolved into the most widely used LGBTQ dating app worldwide, boasting over 14 million monthly active users. A $3 billion valuation—and the freedom that comes with going private—could mark the start of Grindr’s next chapter: one focused less on stock charts and more on the people using the app every day.