Match Group Stock Rises, Fully Acquires Dating App Hinge

  • Monday, February 18 2019 @ 10:06 am
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Match Group Acquires 100% of Hinge

Match Group announced that it has fully acquired dating app Hinge, owning 100 percent of the company along with other high-profile brands like Tinder and OkCupid. This news comes on the heels of Match Group’s announcement that it exceeded revenue expectations in the last quarter of 2018, causing its stock to rise.

Previously, Match Group stock had been downgraded from hold to buy by Deutsch Bank analysts. But with the earnings report, its stock climbed more than 5 percent.

Part of the appeal of Match Group to investors is that it has acquired a host of popular dating apps, including Hinge. The app has been through a rebrand over the last year, focusing on attracting more serious daters.

According to Tech Crunch, terms of the acquisition deal have not been revealed. The news was shared on an earnings call with investors.

Match Group noted on the call that there was still a big opportunity for growth in the online dating market, since of the 600 million singles who have access to the Internet around the world, 400 million have never used a dating app.

Match Group has been acquiring dating app companies to offer a suite of different services to customers with varying needs in order to compete with Facebook Dating, Bumble and others. Hinge has been growing steadily since Match Group initially invested in the company.

Match Group has looked to differentiate its other apps too, including Tinder, which launched its lifestyle campaign “Swipe Life” to appeal to younger daters who aren’t looking for serious relationships but would like to meet new people. The new rebrand offers a website with lifestyle articles and casual dating stories and advice.

OkCupid has also set the stage for differentiating itself from both Tinder and Hinge, focusing on politics and dating as well as a more progressive message. Its most recent effort was its “DTF” campaign, which focused on redefining the acronym to be a call for inclusivity. The tagline is: “dating deserves better,” and offered alternative slogans like “down to feel fabulous” or “down to fall head over heels,” which featured an LGBTQ relationship.

Hinge’s growth is promising to Match Group CEO Mandy Ginsberg. According to Tech Crunch, downloads grew four times (on a year-over-year basis) in the fourth quarter of 2018, and grew by ten times in the U.K.

Tinder however remains Match Group’s cash cow, with its earnings driven by the popular dating app’s continued growth. The app had 233,000 new subscribers over the holiday season, bringing its overall subscriber count to 4.3 million.

There are 8.2 million total subscribers over all of Match Group’s apps. For more on this dating app you can read our review of Hinge.