What happened

Chat and dating app-maker Meet Group (NASDAQ:MEET) surged more than 18% in noonday trading Monday before retreating to close the day still up 5.3%.

Reuters reported late this morning that NuCom, a subsidiary of German broadcaster ProSiebenSat.1 Media SE, is looking into buying Meet Group. NuCom already owns eHarmony.  

Wall painting of a big fish chasing a smaller fish

Image source: Getty Images.

So what

Reuters notes, however, that neither party to the hypothetical merger is commenting on NuCom's interest, and the expression of interest is "confidential." That caveat may have deflated the initial rally in Meet Group shares today. But it's hard for something that isn't happening to be confidential...which seems to suggest that something is happening.

Now what

Even so, Reuters hastens to add that its sources say "there is no certainty there will be negotiations that lead to a deal." That didn't prevent analysts at Roth Capital from chiming in that a sale could fetch as much as $7 to $8 a share for Meet Group -- and reiterating its buy rating on the stock.  

In that regard, Meet Group doesn't necessarily need to score a takeout sale to reward investors. Although the stock seems richly priced at nearly 40 times earnings already (it's up 50% so far this year), Meet Group is profitable and growing strongly. Sales last quarter jumped 15%, with profits up 130%.

So long as momentum remains on its side, Meet Group should see its stock do just fine with or without a suitor.