Acquisitions

The Meet Group’s revenue and profits soared past original milestones for Q2 of this year, thanks in part to so many singles turning to dating apps during coronavirus lockdowns.

The company beat Wall Street estimates, with net income at $10.3 million, up from $2.2 million in the same period last year. This was a huge jump – resulting in a 373% increase in profits for the company. According to Philadelphia Business Journal, The Meet Group did not conduct an earnings call with investors over Q2 results, nor did they speak to the publication about the increase, and what part of its business was generating the most income.

Grindr is set to sell for $608.5 million. The sale comes after the US government expressed national security concerns regarding Beijing Kunlun Tech’s ownership of the gay dating app. San Vicente Acquisition Partners — a group of entrepreneurs and investors in the technology, media and telecommunications industries — will acquire a 98.5 percent stake in Grindr in the deal. 

Kunlun is one of China’s largest mobile gaming companies. The company took a majority stake in Grindr in 2016 for $93 million. In 2018, Kunlun purchased the remaining percentage of the popular dating platform for $152 million. The agreement was met with apprehension on the part of journalists, China experts and former intelligence officials, who suggested that it put the Chinese government in a position to demand sensitive data about the app’s users, including those who are not Chinese citizens.

Rumors began to swirl last December that German broadcaster ProSiebenSat.1 Media SE’s e-commerce arm, NuCom Group, had expressed preliminary interest in acquiring The Meet Group. It has now been announced that the companies have entered a definitive agreement to proceed with the acquisition. NuCom will pay $6.30 a share in the deal, putting an enterprise value on Meet Group of approximately $500 million.

Based in Pennsylvania, The Meet Group is a maker of mobile apps that focus on live streaming broadcasts and text-based conversations, including MeetMe, Skout,  LOVOO, Tagged and Growlr. NuCom’s holdings include eHarmony, which it acquired in 2018, and the Germany-based dating platform Parship. The Meet Group’s dating brands will be combined with NuCom’s portfolio company Parship Group. The acquisition will help both companies diversify their revenue streams and broaden their combined international footprint.

Dating app Grindr, currently owned by Chinese company Kunlun Tech, might be off the market soon thanks to a bid by the Milan-based app design company Bending Spoons.

According to Global Dating Insights, Bending Spoons has offered $260 million for the popular gay dating app, headquartered in West Hollywood. Reports are also linking investment firm H14 to the deal, which is headed up by Barbara, Eleonora, and Luigi Berlusconi, children of Italy’s former prime minister Silvio Berlusconi. The app’s original founder Joel Simkhai sold his company for $93 million to Kunlun Tech in 2016. 

Image: Business Wire

Spark Networks announced that Eric Eichmann will take over as CEO of Spark Networks, replacing Jeronimo Folgueira.

“I could not be more excited to join Spark at this time,” Eichmann said in a statement, published in Yahoo! Finance News. “Spark has a tremendous brand portfolio to help people find love across the globe…I look forward to working with the great team at Spark and leading the next chapter of its development.”

Dating.com Group is expanding its suite of dating apps by acquiring Dil Mil, a San Francisco-based dating app that is popular among ex-pats from India and South Asian countries, according to Tech Crunch.

South Asian ex-pats are less interested in arranged marriages, and have turned to dating apps to help find love in the U.S. However, most popular American dating apps like Tinder and OkCupid aren’t culturally appealing to this group of daters, who are more conservative and traditional in their approach to dating.