Will Tinder’s Recent Trouble Affect IAC?

Tinder
  • Friday, July 25 2014 @ 07:00 am
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Tinder has hit a bit of a rough patch lately. The company behind the hyper-popular mobile dating app was recently slapped with a lawsuit by its former VP of Marketing, Whitney Wolfe. In the suit, Wolfe alleges that she was sexually harassed and discriminated against at work, stripped of her co-founder title, and forced out of the company when she complained.

There’s no question that Wolfe’s accusations have affected the people involved, one of whom was suspended indefinitely, but what remains to be seen is whether they affect the company as a whole and its majority shareholder IAC.

Investors have been hoping that IAC, which also owns Match.com and OkCupid, would use Tinder’s success to spin off its online dating businesses into a separate company, thereby making IAC shares more valuable. But now that Tinder’s in trouble, that prospect could be in trouble too. “Given what’s going on at Tinder, I would assume that probably would cause IAC and Match to think a little bit longer and harder about pursuing that at this juncture,” Scott Kessler, an analyst with S&P Capital IQ, told Bloomberg News last week.

I’m just guessing here, but IAC and its shareholders probably aren’t too pleased at this complication throwing a wrench in a very lucrative opportunity. Investors have been encouraging IAC execs for months to speed up the process of making Match its own business, but now their plans may be thwarted (or at least slowed down).

Last year, IAC made $788 million in revenue from membership and subscription dues for dating services – well more than twice what it had made five years earlier, despite the fact that they have yet to monetize Tinder. What's more important than revenue for investors is market value, which Tinder has in spades. Tinder is one of the hottest commodities on the market right now, and creating the separate Match group could cause spikes in the stock prices of both IAC and the newly formed company.

History has shown that this is a good move for IAC. When the company separated Match from its search business, its stock price jumped significantly. Barry Diller, IAC’s chairman, has also seen huge profits from spinning off businesses from IAC. The question now is whether or not Tinder is damaged goods and, if so, just how damaged. So far the company is remaining frustratingly tight-lipped about both Tinder’s trouble and the possibility of Match becoming its own company.

Google vs. Amazon: Who Has The Hotter Employees?

Hinge
  • Thursday, July 24 2014 @ 06:54 am
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  • Views: 1,300

I think a lot of things while sitting at my computer, but until now, none of those things have involved which giant Internet company has the hottest employees. I was perfectly content to search for cat videos on Google and order weird home appliances I’ll never use on Amazon without thinking about the attractiveness of the people on the other side of those companies.

Then Hinge came along, a dating app that matches young professionals in similar networks, and decided that was no way to live. According to Hinge, users are 14.2% more likely to “swipe right” for Amazon employees than their counterparts at tech companies like Google, Microsoft, Apple, and Facebook. Microsoft came in second, with right swipes occurring 8.2% more often than average. Apple ranks as the least attractive tech firm, with a dismal percentage of 0.2, which is a bit surprising given the cool factor attached to all things Apple.

Before you rush to send in your resume to Amazon, consider the facts behind the findings. Amazon reported having 117,300 employees as of January, including part-time workers. In contrast, Microsoft is home to 99,000 employees, Apple to 80,300, Google to 47,756, and Facebook to 6,337. Because Hinge connects daters through their career networks, it’s likely that more Amazon employees are on the app in the first place.

Oh, and there’s also the fact that Hinge found Amazon employees to be the least “picky” of all the tech companies. Meaning, in the app world, that they’re more likely to swipe right on a profile. And meaning, in the real world, that they’re not exactly selective about who they go on dates with (no judgment, of course…do your thang, Amazon employees). Amazon employees’ more open minded approach to dating could also account for their higher numbers.

Facebook employees displayed the most pickiness – defined by how often the users pass on prospective matches by swiping left – of the bunch. Employees at the social network turned down potential matches 7.5% more than the average Hinge user. Apple employees were found to be the second pickiest, though at a rate of only 0.5% more than average.

On the whole, techie types stacked up well against the competition. Men and women at four of the five companies were all rated more attractive than the average Hinge user (the fifth, Apple, got right-swiped at about the average rate).

Good luck ever ordering from Amazon again without thinking about the hottie who may be processing your order on the other side.

Dating Giant IAC Buys How About We

How About We
  • Wednesday, July 23 2014 @ 07:06 am
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  • Views: 2,761

IAC is positioning itself to be the center of the online dating world. Its 150 brands are cornering the market, particularly Match.com, OkCupid, and popular dating app Tinder. Now, it’s added How About We to its roster. Neither IAC or How About We disclosed the purchase price.

How About We offers a unique twist in online dating – focusing on the offline part of the process. Members can create date ideas, post them to How About We, and see if anyone cares to join them on the date. This bypasses the typical process of scrolling through profiles and matches as you would do on other sites.

The company has gone through a lot of changes in the last couple of years, starting with broadening its reach to include curated dating services for couples (extending their user base and approach beyond just the singles market). More recently, the company purchased popular online dating site Nerve.com, and added three new content websites to the mix to offer editorial on dating advice, celebrities, sex, relationships, and other hot topics.

Did it spread itself too thin?

According to the New York Times, How About We co-founder Aaron Schildkrout (now the chief executive for This Life, Inc., the parent company of How About We) thinks this will only broaden their opportunities. “We spent the last five years building and scaling HowAboutWe; our unique ‘offline dating’ experience has been used by millions of people and has helped many, many people fall in love. Our new partnership with IAC will help us bring this dating experience to an even larger number of people than ever before.”

This contradicts his statements earlier this year, where he positioned the company to compete heavily with IAC. “The online dating business is completely monopolized — IAC owns online dating,” Schechter told Fortune in January. “So what we’re trying to do is build a media company whose sole focus is love. And we think that’s the way to beat IAC.”

The How About We dating service and media properties were sold to IAC, but a portion of the company remains independent: the couples service. Last month, employees were reportedly left in the dark about whether or not they would be fired in the wake of the acquisition, with some being promised they would stay only later to find that offer recanted.

According to the New York Times, some employees will be moving to IAC, others will be staying to work on the couples service, and some have been laid off.

Tinder Has Been Matched…With A Sexual Harassment Lawsuit

Tinder
  • Tuesday, July 22 2014 @ 07:13 am
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  • Views: 1,204

Most things are going brilliantly for Tinder these days, but one thing most certainly is not. Whitney Wolfe, Tinder’s former vice president of marketing, slapped the company with a sexual discrimination lawsuit at the end of June.

In the suit, Wolfe claims her former boss called her a “whore” at a company event in the presence of Tinder CEO Sean Rad and that she was stripped of her status as a Tinder co-founder. When she complained about her treatment to other executives, including Rad, she says they forced her out of the company.

The story goes back to 2013, when Wolfe and chief marketing officer Justin Mateen dated for several months. After they broke up, Wolfe claims Mateen sent her a series of inappropriate text messages and e-mails filled with racist and sexist language. When she complained to Rad and Match.com CEO Sam Yagan, they allegedly ignored her repeated complaints about his behaviour.

Wolfe also contends that Mateen told her she was not listed in Tinder’s press materials as a co-founder because having “a girl founder” who was just 24-years-old (at the time) would devalue the company. Later, after Mateen allegedly called her a “whore” in front of Rad and other co-workers, Wolfe says she offered to resign in exchange for “modest severance” and the vesting of her stock options. Instead, she claims, she was fired.

John Mullan, one of Wolfe’s attorneys, said in a statement that Wolfe “lost her job simply for refusing to take the abuse any longer.” Another one of her attorneys said “IAC and Match.com, which own Tinder, allowed this culture to exist and did nothing to prevent the discrimination or harassment. IAC and Match.com need to be held responsible for their failure to supervise the executives at Tinder. There really was no ‘adult in the room.’”

In response, IAC indefinitely suspended Mateen. “Through that process, it has become clear that Mr. Mateen sent private messages to Ms. Wolfe containing inappropriate content,” the company said in a statement. “We unequivocally condemn these messages, but believe that Ms. Wolfe’s allegations with respect to Tinder and its management are unfounded.”

The story gets more complex when you try to determine who actually is a legitimate co-founder of Tinder. TechCrunch did an in-depth examination of the people involved in Tinder’s creation and it’s…convoluted, to say the least. It’s hard to see how they themselves can keep up with it all (and maybe they can't), much less anyone else.

Wolfe is seeking compensatory damages, including for lost pay and benefits, as well as punitive damages for emotional distress.

Two Milestones For Jiayuan.com

Jiayuan.com
  • Monday, July 21 2014 @ 06:47 am
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  • Views: 3,277

Jiayuan.com, the largest online dating site in China, surpassed the 110 million registered users mark on June 29, 2014.

Jiayuan got its start a decade ago to address the unique needs of China's rapidly growing urban singles population. The website was a pioneer in China's online dating market, and now ranks first in the country in terms of number of unique visitors, average time spent on the site per user, and average page views per user. Over the course of its 10-year history, Jiayuan has facilitated 12.3 million matches in China.

The site has become so big that, according to comScore, it accounted for more than half – 58.4% to be exact – of the total time spent on online dating in China in March 2014. It is the 60th most visited website in the country according to Alexa.com, and the 336th most popular website in the world.

Jiayuan.com hit the 100 million registered user accounts milestone back in January 2014, adding 10 million more users over the course of the last six months. "I am pleased to see Jiayuan's registered user accounts surpass the 110 million mark as we continue to gain momentum from our solid start to the year," commented Mr. Linguang Wu, CEO of Jiayuan, in a press release. "Passing the 110 million milestone speaks to the strength and growing popularity of our platform as we make the investments needed to increase our brand equity and solidify our leadership over our competitors. These investments include ramping up mobile monetization now that we have successfully grown our mobile platform to include 24.8 million registered user accounts and 31.2 million activated installments as of June 29, 2014."

One of Jiayuan’s recent investments is a partnership with animation firm Up Studios, whose brand Piggy in Love (which follows a pig looking for his lost love) will be featured in Jiayuan’s new mobile app. Through their licensing agreement, Jiayuan users will be able to send romantic animations and Piggy in Love emojis in their messages.

Mr. Wu concluded, "Looking to the future, we will continue to build upon this massive database of marriage minded singles by integrating it with our proprietary CRM system in an effort to consolidate the traditional matchmaking business in China which we believe is poised for a period of explosive growth. 2014 is an important year for us strategically as we make investments in our database of eligible singles to generate new revenue streams and ensure the long-term sustainability of our business."

5 Tips for Dating App Success

Mobile
  • Sunday, July 20 2014 @ 10:19 am
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  • Views: 1,236

Online dating has been around for a while, but dating apps are a relatively new phenomenon and are soaring in popularity. And why wouldn’t they? Most of us have a phone with us at all times, and if you’re single, you’re probably more social than your married counterparts – which means you’re not sitting at home in front of your laptop. But does that mean the matches you get on Tinder are working out for you?

Dating apps are easy to use, the majority of them are free, and they provide instant access to available singles in your immediate area. What’s not to like? The ease and convenience of apps is not lost on some of the more traditional online dating sites, like Match.com, who offer their own apps. But sometimes it’s easier to scroll through the app than it is to actually meet someone new and start dating. So how do you move from texting to an actual date?

Following are 5 tips to help you get past the swipe left/right phase and to the in-person meet:

Try a new app. While everyone seems to be downloading Tinder (if only for the fun of scrolling through photos while you’re waiting in line or on a lunch break), it’s not the only dating app around. Some apps like Hinge and Coffee Meets Bagel are geared towards the more serious dater, because they offer matches based on your Facebook network, rather than just random people who happen to be near you. Maybe it’s time to check out something new.

Don’t just scroll when you’re bored. Know what you want. What’s your goal in using a dating app? Are you just looking to hook up, or for something more substantial? This makes a huge difference in your experience. If you are looking for a relationship, you might get easily frustrated by Tinder. If so, decide to put time and effort into your search, and be a little more discerning about who you go out with. Don’t meet for last-minute drinks at 10:00.

Check in regularly. “You snooze, you lose” really applies to online dating. If you’re not checking in on a regular basis with your dating site or app, then likely you won’t get the results you want. Again, time and effort is key. You never know from day to day who your matches might bring, so set aside at least 30 minutes a day to check.

Update your photos and profile. Some dating apps have restrictions on the number of photos you can post, or they might just pull info from your Facebook page. If this is the case, be sure to change them out every few weeks. Depending on what you post, you could attract different types of people. Variety is key in dating.

Say “yes” more. Not sure about him/her? Say yes to a match. Start chatting and see what happens. Many times we bypass people unless something really captures our attention. But why? Dating is all about seeing what is possible. Say yes to more people and see your dating life change for the better.

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