Elliott Investment Management's Stake in Match Group
According to a report by The Wall Street Journal, activist investor Elliott Investment Management has built a $1 billion stake in Match Group, the company that owns Tinder and Hinge. The move is aimed at revitalizing Match's declining stock price.
Reviving Match's Stock Price
Match Group, the owner of popular dating apps Tinder and Hinge, has seen its stock price plummet during the pandemic. Elliott Investment Management, known for its activist investing strategies, is pushing for a shake-up at Match. With its $1 billion stake, Elliott will urge the company to take necessary steps to revive its slumping stock price.
Current State of Match's Shares
Match's shares have experienced a significant drop, trading nearly 80% below the highs they reached during the pandemic. Despite a 3% increase in shares on Tuesday, Match's stock price remains significantly below its 2021 peak. The company's total market capitalization has also decreased from over $40 billion three years ago to just under $11 billion currently.
Match Group's Portfolio of Dating Apps
In addition to Tinder, Match Group owns several other popular dating apps including Hinge, OKCupid, and Plenty of Fish. These apps have gained significant popularity, especially during the COVID-19 lockdowns when more Americans turned to online dating.
Challenges Faced by Match Group
Match Group has faced various challenges impacting its revenue and profitability. Slowing advertising, a strong US dollar, and the war in the Middle East have all contributed to the company's below-expectation fourth-quarter revenue forecasts. Additionally, the potential recession and tightening of consumer spending pose threats to Match's ability to generate revenue from dating app subscriptions.
About Elliott Investment Management
Elliott Investment Management is renowned for its activist investing approach. The firm buys shares in public companies to advocate for changes at the board level. In the past, Elliott has made significant investments in companies like Crown Castle and Phillips 66, as well as being involved in high-profile battles for control of Manchester United.
Business Insider reached out to both Elliott and Match Group for comment, but there has been no immediate response.
Source: Business Insider
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By: gglover@insider.com (George Glover)
Title: Elliott Investment Management Builds $1 Billion Stake in Match, Urges Revival of Stock Price
Sourced From: markets.businessinsider.com/news/stocks/tinder-hinge-match-elliott-activist-investing-okcupid-plenty-of-fish-2024-1
Published Date: Wed, 10 Jan 2024 12:28:41 +0000
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