Finances

Market analysts have a fascination with Tinder and Bumble, the two fastest-growing dating apps in the online dating industry. Rumors have been persistent that Match Group and Tinder was interested in acquiring the female-friendly dating app for around $450 million as reported back in August of this year, but the company turned down the offer.

Now it seems that Match Group, the parent company of Tinder, is reportedly still in talks to acquire Bumble, but now for a much heftier price tag of one billion US dollars, according to a recent article in Forbes.

Currently, Match Group has only $500 million in cash and a market cap of under $8 billion, according to website TechCrunch. So potential options would be to fund Bumble with some debt, or to do a cash/ stock combination deal, or even to acquire a portion of the company rather than all of it.

Match Group LLC stock got a boost in early October, thanks to the success of Tinder Gold. The new premium app was among the top apps in the Apple Store, not just among dating apps, but alongside Netflix and Pandora. Match shares were up 3.6% Wednesday October 11, and the stock has jumped more than 50% since the start of the year.

But one question on investors’ minds is: what should we expect from Match Group’s other dating apps?

Match Group owns four of the five most popular dating sites, including Match, OkCupid, Plenty of Fish and Tinder, along with several niche dating sites. The problem for investors despite the good news is that these older sites have gotten less attention in Match Group’s overall valuation, because they aren’t generating the users or attention that Tinder does on an ongoing basis, despite their longevity in the online dating market.

Match is one of the oldest names in the online dating industry, but its strongest asset is a much younger name in the biz: Tinder.

As the stigma around online dating fades, the industry is experiencing rapid growth, particularly in the Millennial segment. Pew Research estimates that use of online dating sites among young adults (ages 18-24) nearly tripled from 2013 to 2016, rising from 10 percent to 27 percent, and opening a major opportunity for Match Group to expand its market share.

Match owns Tinder, the leading dating app for Millennial singles. By placing the majority of its focus on growing Tinder, Match Group hopes to secure its position as the digital match-maker of future generations.

Are you a mindful single and looking for someone who’s also interested in meditation, green living, and conscious eating? Then look no further than Denver-based dating app MeetMindful, who recently raised $1.8 million in investment money in the saturated dating app market.

This seed round included funds from top investors in mindfulness, dating, and SaaS technology, including the CEO of Hay House, a popular publishing company among the mindfulness crowd, and Bridge Builders Collaborative.

"We see significant potential in MeetMindful to facilitate authentic relationships for the millions of people pursuing more mindful, healthy lifestyles," said Bridge Builders Collaborative's Operating Partner Charlie Hartwell in a statement.

Match Group reported fourth quarter and full year 2016 financial results, revealing a mix of highs and lows.

“Match Group executed well in our first full year as a public company,” said Greg Blatt, Chairman and CEO. “We had strong double digit revenue, operating income, Adjusted EBITDA and PMC growth, generally on track with our expectations at the time we went public. As we roll into 2017, we’re confident we can maintain that momentum.”

Q4 2016 highlights include:

Hornet, a dating app that touts itself as “the world’s second largest gay social network,” has announced that it has raised $8 million in its first round of institutional financing. The Series A round adds to a $500,000 angel round raised in 2012.

Founded in San Francisco in 2011, Hornet set out to strengthen the gay community by providing quality social interactions and being the most inclusive, diverse service in the LGBT dating market. CEO Christof Wittig has previously said the company aims to “jump in where Grindr dropped the ball” by focusing on lasting connections rather than quick flings.