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Did Match Know Tinder Was Hotter Than They Said?

Dating app or site in mobile phone screen. Man swiping and liking profiles on relationship site or application. Single guy using smartphone to find love, partner and girlfriend. Mockup website.
By George Khoury, Esq. | Last updated on

In an odd turn of events, the recent spike in Match Group's earnings due to acquiring Tinder may have an unintended consequence.

While normally boasting big gains is good news, Match is currently being sued by Sean Rad, Tinder's co-founder, alleging that Match deliberately undervalued Tinder when it paid Tinder's people on acquisition. The massive gains for Match are, reportedly, going to be used by Rad to prove that point. Rad's lawyers have stated that Match ripped off the original Tinder folks for billions of dollars.

Dating Billions

Notably, acquiring Tinder was a rather strategic move for Match as it is clear that Tinder is the most popular dating app among the youth and Millennials. Essentially, because of the newer attitudes towards marriage being something that can wait, match-making services like Tinder and Match, stand to really profit as people will date more, and thus, use their services for longer. These new attitudes about marriage have also grown hand in hand with more accepting attitudes about the apps and services for online dating. In short, more people are dating for longer, and more people are using online dating services and apps than ever before. 

All's Fair in Love and Litigation

If you've been following the Match-Tinder lawsuit, it may come as a shock to hear that one analyst recently suggested that Tinder has a $10 billion valuation (a massive jump from it's last $3 billion valuation). Match hasn't stated a value quite yet, but at the time of filing, Rad's lawsuit alleged that Tinder was undervalued by $2 billion, rather than the $7 billion that the recent report suggests.

If you haven't been following it, then you may want to spend some time digging in because it is a messy, dramatic, and fascinating case. In addition to the claims of the startup employees getting shortchanged by billions, a former VP is alleging a startling case of sexual harassment and misconduct.

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