Tinder, Match, and OkCupid Prepare For IPO

Match
  • Sunday, July 19 2015 @ 07:00 am
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  • Views: 2,829

If only all breakups ended as well as this one.

IAC/InterActiveCorp announced recently that Match.com, Tinder, OkCupid, and other dating services would become part of their own spinoff unit. The subsidiary will be called The Match Group and will be a publically traded company. Following the news, shares of IAC rose over 5%.

According to the announcement, The Match Group is likely to issue less than 20% of its common stock. The IPO is expected to be completed in the fourth quarter of this year, after which investors will be able to buy stock in the company. So far, the ticker symbol (the three-or-four letter identifications that represent companies on stock exchanges) is unknown.

The Match Group is starting out on top. IAC/InteractiveCorp is a $6 billion media conglomerate, and revenue of the new Match Group accounted for nearly one third of IAC's total revenue in the most recent quarter.

Last quarter, The Match Group reported revenues of $239.2 million, marking an increase of 13% on a year-over-year basis. Reports say Match Group’s revenues are expected to increase 18% in 2015, bringing the number to $1.24 billion.

The hope with separating the Match Group, and combining more established businesses (like Match and Meetic) with earlier stage businesses (like Tinder), is that the move will lead to significant cash flow generation and meaningful growth potential.

Or, as Chariman and Senior Executive Barry Diller colorfully put it, “I'm not a believer in simply agglomerating assets in perpetuity. I've long felt that as entities grow into size and maturity it's healthy to give them separation and independence from a mother church."

It's an exciting time for the industry, but dating services haven't always done well on Wall Street. AshleyMadison forfeited an IPO in 2011. Zoosk filed for an IPO in April 2014, but withdrew the application in May 2015. Hinge, on the other hand, skipped the IPO entirely, instead relying on raising capital from venture capitalists. In 2014, Hinge had raised $12 million.

The Match Group will also face stiff competition from other key listed players like Spark Networks and Jiayuan.com. Still, IAC believes this IPO can give new life to the Group. Estimated EBITDA for The Match Group in 2015 is $264.9 million – and that's excluding the $75 million EBITDA anticipated from Tinder alone.

A well-received IPO could not only put IAC significantly ahead of its competitors, but also serve as a litmus test for the entire dating industry.

PlentyOfPersonality Study Reveals Personality Traits Of Singles By City

POF (Plenty of Fish)
  • Saturday, July 18 2015 @ 07:08 am
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  • Views: 2,191

Did you know crafty ladies love Houston, men in Seattle seek outdoor adventure, and intellectual singles flock to Washington, DC?

It's hard to put much stock in the interests section on online dating profiles. Occasionally you may connect with something, but mostly it's a lot of boring clichés (“I like traveling and hanging out with my friends”). All most of us use the interests section for is scanning for red flags and looking for microscopic signs of compatibility.

Well, it turns out those interests may serve a more important purpose. Using an interest-based algorithm, PlentyOfFish examined the dating profiles of more than 10 million singles over the age of 21 to group them into personality types. The results were released as a new research study called PlentyOfPersonality.

The research identified the top 20 personality archetypes, based on corresponding interests, of singles in 11 major American cities. The data was then broken down by city and gender to asses how differences and similarities in the personality types might impact dating habits.

The 20 personality types are: Artist, Bar Game Buff, Cultured Urbanite, Curious George, Eternal Optimist, Family First, Fast and Furious, Happy-Go-Lucky, Health Buff, Intellectual, Live Event Fan, Mainly Mainstream, Pinteresters, Romantic, Salt of the Earth, Social Butterfly, Sports Fanatic, Weekend Warrior, Well-Rounded, and Outdoor Adventurer.

Scanning the data, it's clear that some cities have greater potential for compatibility than others. Men and women in Detroit, for example, sync up on three of the four top personality types: Weekend Warriors, Eternal Optimists, and Bar Game Buffs.

On the other hand, singles in Boston may have a hard time finding their matches. Female residents are Cultured Urbanites, but most men are partying Weekend Warriors. A similar split is seen in Seattle, where men are Weekend Warriors and Outdoor Adventurers, but women fit into the quieter and more creative categories of Pinteresters and Artists.

So what we can we learn from POF's personality study?

First, don't skip over the interests section. You may be tempted to say “I dunno,” “Ask me,” “Too many to list here,” or leave it blank, but you're missing a valuable opportunity.

When you do fill it out, consider your answers carefully. Discerning visitors are using your interests, consciously or subconsciously, to construct a portrait of your personality. Make sure it's an accurate representation of who you are and make sure the statement it's making is positive.

If all else fails, perhaps it's time to pack up and move. Love could be waiting across state lines. For more on the dating service which conducted the study, you can read our Plenty of Fish review.

How To Turn Down A Date Without Breaking A Heart

Dating
  • Friday, July 17 2015 @ 07:47 am
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  • Views: 1,166

Rejection isn't easy to take, but dishing it out isn't a walk in the park either. Most of us aren't out to hurt feelings or break hearts, so when it comes time to let someone down gently, we really do want it to be gentle.

If you're unprepared to be asked out, your response can be awkward or unintentionally hurtful. If it's already happened, well, these tips won't help much. But keep them in mind so you can handle things like a pro next time.

  • Obey the golden rule. Treat others how you would want to be treated. A “no” that sounds offended or disgusted is a harsh response. Unless the person is intentionally being offensive or disgusting, try to remember that it takes courage to approach someone and that they did so because they think highly of you. Keep your tone polite and calm, while still sounding assured.
  • Don't drag it out. Although you do want to handle someone's feelings with care, honesty is the best policy. If you know you're not interested, say so swiftly and directly. Agreeing to a date out of pity, being unclear about your intentions, or remaining silent to avoid confrontation only lead to more hurt down the road. Give a definitive answer so both of you can move on with your lives.
  • Make it about you. Yes, turning down a date really is an “It's not you, it's me” situation. If you choose to offer an explanation for your “no,” keep it focused on yourself. No one wants to hear a list of reasons why they don't measure up. Use "I" statements instead. Think “I don't feel that connection between us” or “I'm not looking to date someone right now.”
  • Don't keep them on the hook. When you turn someone down, make sure they know it's final. It's important to be kind, but being overly sympathetic or friendly can backfire. Don't give hope when there's none there. It should be clear that your “no” isn't a “not right now” or “let's see where things go” or “keep trying until I say yes.”

When the conversation is happening online, the rules are a little different. Although kindness and clearness are both still encouraged, online dating offers more wiggle room. Most people reach out to as many possible dates as they can, so they're unlikely to be strongly invested in any single one.

If all they do is send you a “Hey or a “What's up?” a response probably isn't warranted at all. If they've written a more detailed message, a polite-but-firm sentence or two is all you need. Wish them good luck and call it a day.

Match.com Acquires Plenty of Fish (POF) for $575 Million

POF (Plenty of Fish)
  • Wednesday, July 15 2015 @ 06:58 pm
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  • Views: 4,531

On Tuesday Match Group which is a subsidiary of IAC/InterActiveCorp purchased PlentyofFish Media for $575 million in cash. The deal is expected to close by the end of the year. Markus Frind which is the founder and sole owner of POF started PlentyofFish.com way back in 2003. It was a side project for him to learn a new programming language. It quickly exploded and by 2008 he was earning $10 million a year from the dating site with only a couple of employees. Early this year POF.com reach a milestone and hit 100 million users. The company also predicted it would earn $100 million for the year 2015. On its newly launch responsive mobile site POF currently reports the following statistics:

  • 3.5 million singles log into POF.com daily (through the website and dating apps)
  • Those same singles generate more than 9 million conversation every day
  • From those conversations 1 million relationships are created every year

In the past two years I have heard several rumors about Match being interested in purchasing POF.com. I had heard around $300 million was offered at one point, but it was turned down. For a site earning $100 million in a year with no debt and it’s only real expense is it’s 75 employees that was a pretty low offer (if it is true). Obviously there was some negotiations going on which resulted in Markus walking away with over half a billion dollars. Funny enough, the general rule of thumb in purchasing a website (now these are much smaller sites [smilely: ;]]), is that it is worth about 4 years’ worth of the income it generates. I guess from using this purchase as an example, that the rule is not too far off!

The Match Group has purchased a number of dating services over the past 6 years:

Combining all of these sites along with Tinder (which Match had funded pretty early on) and adding POF to the mix, this will make the Match Group the undisputed power house in dating online and on our phones for years to come. Acquiring POF will also make the Match Group’s proposed IPO that much more enticing to investors when it happens, which is most likely near the end of the year.

POF is currently a free dating site that offers a paid subscription for an upgraded membership. This upgraded membership offers a number of features like no ads, viewing extended profiles and seeing who has viewed your emails. I am curious to see if the Match Group plans any tweaks to this formula. If they change POF to a completely paid dating site like Match.com (which I highly doubt by the way), then I am sure POF users would be up in arms. I have a feeling they will leave POF.com pretty much the same for now and let it continue as is, in the same way Match Group let OkCupid continue to operate.

Mix up Your Online Dating Routine

Advice
  • Wednesday, July 15 2015 @ 08:18 am
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  • Views: 1,706

Tired of feeling like you’re in a dating rut? Sometimes Tinder is fun, but it doesn’t yield the long-term results you crave. If you really want things to change, you’re going to have to explore other options and mix up your routine.

Change is hard – it requires getting out of your comfort zone and putting in some effort. I think that Tinder has been such an attractive app because it takes all of the effort out of dating, leaving it to be more of a game to pass the time. Don’t get me wrong – there are couples who met over Tinder, but they also made an effort to meet each other in person, too. Dating has to happen for a relationship to evolve.

Instead of relying on your dating apps like Tinder, it’s time to explore your options. Traditional online dating sites – especially those that charge a fee for their matching services – tend to attract daters who are a little more serious, a bit more invested. Mix up your routine by joining Match.com or eHarmony, and enlisting a friend to help craft your profile. (I find that many people aren’t very accurate with describing themselves – either they try to create a certain “image” and don’t come across as trustworthy or real, or they downplay their assets, thinking humility is a good trait to attract someone romantically. It’s not.

Matchmaking services are also an interesting option, because they are a little more curated and provide a higher level of customized service. If this kind of thing intimidates you, start with a service like “It’s Just Lunch.” It’s Just Lunch provides a way to cut to the chase, where you are set up on a simple lunch date with a match to see if you click. It’s casual, but at least you get to meet in person to see if there’s any chemistry, rather than dealing with messages from dating apps which go nowhere.

Dating apps are a good thing, they just aren’t able to provide a different type of experience – they are for quick views and snap judgments, and people move rather quickly through them. When you meet someone via an online dating site or service however, the process moves a bit slower – you message back and forth, you are encouraged to meet in person, and you get a chance to “date” rather than sort through endless options. There’s something to be said for taking your time.

How to Succeed in Online Dating

Advice
  • Tuesday, July 14 2015 @ 07:48 am
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  • Views: 1,389

With online access to virtually everything, we have become accustomed to getting what we want quickly. Instead of driving from store to store, we find exactly what we need searching the Web.

Because of our ability to find anything online – including a date – we have taken this to mean that the perfect date can be made-to-order. We are no longer bound by our circles of friends and family, but have access to virtually anyone in the world we want to meet (provided they are also online). Which means we can filter out the types of people we don’t want based on age, location, political beliefs, height or weight, or any of a number of factors. But this also means that we miss out on opportunities.

Online dating is marketed as being convenient and easy – you can meet anyone with a swipe of the screen or by accepting a match. But really, dating is the same as it ever was. As I state in my book Date Expectations, meeting someone is the easy part. The next step – getting to know someone over a series of dates – is where the connection really counts. But too often, we aren’t willing to wait to get to that part. Instead, we crave instant attraction or chemistry or we walk away. There is no in-between, because it’s too easy to move on to the next person.

If we scroll through people in real life, rejecting and judging before we’ve even gotten to know them, we miss out on forming any real connections. Sure, chemistry is fantastic, but it’s not lasting or a real indication of the success of the relationship. Real connection takes time.

Far too often, people aren’t what they seem when you first meet them. This isn’t saying they misrepresent themselves, but rather, they are putting on a bit of a performance trying to be the ideal date. Maybe they tried really hard to be witty, or they were so nervous they could barely form a coherent sentence. Or maybe your date had a bad week and isn’t really trying to make a good impression. In other words, who you first meet isn’t necessarily the person you get in a relationship. It takes a few dates to peel away the layers and see if there is a connection.

In other words, we have to try and be more patient when we date. It’s not a race to the finish line, or looking for instant connection, or assessing someone’s worth as a potential spouse – instead, it’s a process. Like anything worth having in life, it requires time and effort. It requires something of you – namely, to leave yourself open to possibility and to take your time navigating your way, rather than trying to fight off the currents by rejecting as many candidates as possible to get to the “right one.” The right relationship happens thanks to two people willing to see where things might lead.

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