Match Group, the parent company of dating app Tinder, is set to face more pressure from activist investors. According to a report by The Wall Street Journal, activist investor Starboard Value has increased its stake in Match to 6.5% and is pushing for changes in the company, including a potential sale.
Reportedly, Starboard wants to see cost-cut measures implemented and improvements made to the company’s biggest revenue generator, Tinder, while also believing that Match’s other apps, like Hinge, are not being used to their full potential. If Match fails to turn around its underwhelming performance and weakened revenue, Starboard will likely insist on transferring the company to private ownership.
Several other activist investors have been recently pushing Match to improve their results. Elliott Management named two new board members, Instacart’s Laura Jones and Zillow co-founder Spencer Rascoff, while Anson Funds Management is also pushing for a board reconstruction.
A spokesperson for Match Group said in a statement that it is in constant communication with Starboard and other investors and is committed to the growth of its business.
“We are relentlessly focused on executing our key initiatives, which include: driving growth at Tinder, continuing Hinge’s impressive expansion, maintaining appropriate financial discipline, and returning capital to our shareholders,” the spokesperson said.
Following Starboard’s stake reveal, the Match Group’s stock has soared 8.56% in the aftermarket trading compared to its Monday closing price of $32.02 per share. Prior to the jump, the company’s shares were 12.06% down year to date.