Please ensure Javascript is enabled for purposes of website accessibility

Match Group Reportedly Wants Meet Group to Acquire It

By Rich Duprey - Feb 6, 2020 at 4:08PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Dating site looks for rebound relationship as it's about to be spun off from IAC/InterActiveCorp.

Match Group (MTCH) would be a perfect candidate for one of its online dating apps. It apparently can't bear the thought of being single.

The owner of Tinder, OKCupid, Hinge, and of course its own namesake dating site, Match is about to be spun off from tech holding company IAC/InterActiveCorp, which routinely incubates businesses and then sets them free. However, Bloomberg reports Match has already approached Meet Group (MEET) about being acquired. Sometimes being alone can be frightening.

Woman smiling at cellphone with hearts streaming out of it

Image source: Getty Images.

Plenty of fish in the sea

Although Match is the biggest dating site, the entrance of Facebook onto the scene has changed the dynamic. While there's no guarantee the social networking site will be successful, some of the remaining dating companies are looking to hook up to counter it. Bumble owner MagicLab sold a majority stake in its business to Blackstone Group while Match itself has acquired some 25 companies over the years.

There have been concerns about how Match would handle single life. IAC is dumping about $1.7 billion in debt on the dating site, which would be added to the $1.6 billion it already carries. And when it reported earnings earlier this week, it fell short of expectations and blamed Apple making it easier to cancel a subscription -- essentially swiping left on the app, if you will.

Fourth quarter revenue was up 20% year over year to $547 million, but that was below forecasts of $553 million, and it said first quarter revenue would come in between $545 million and $555 million, lower than Wall Street's $562 million projection.

Match Group's stock was up over 7% on the takeover rumor.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Match Group, Inc. Stock Quote
Match Group, Inc.
MTCH
Meta Platforms, Inc. Stock Quote
Meta Platforms, Inc.
FB
$191.63 (4.24%) $7.80
Apple Inc. Stock Quote
Apple Inc.
AAPL
$143.78 (2.32%) $3.26
The Meet Group, Inc. Stock Quote
The Meet Group, Inc.
MEET
The Blackstone Group L.P. Stock Quote
The Blackstone Group L.P.
BX
Match Group, Inc. Stock Quote
Match Group, Inc.
IAC

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
332%
 
S&P 500 Returns
118%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.