Please ensure Javascript is enabled for purposes of website accessibility

Eharmony Parent Acquires Competing Dating App Company The Meet Group

By Rich Duprey - Mar 5, 2020 at 9:54AM

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

The dating app industry has been undergoing a wave of consolidation over the past few years.

Dating app site The Meet Group (MEET) announced it agreed to be acquired for $500 million by NuCom Group, a joint venture between German broadcasting company ProSiebenSat.1 Media and private equity firm General Atlantic. NuCom owns competing matchmaking site eharmony.

The dating app market is undergoing consolidation as it was reported last month that industry leader Match Group, the owner of such sites as Tinder, OKCupid, and Hinge -- as well as its namesake dating app -- had approached The Meet Group about an acquisition. Bumble owner MagicLab also sold a majority stake in its business to Blackstone Group late last year for $3 billion.

Smiling woman looking at phone with hearts streaming from it

Image source: Getty Images.

Offering a significant premium

According to Meet, NuCom will purchase the dating site for $6.50 per share in cash, giving Meet Group an enterprise value of $500 million. NuCom owns Parship Group, which has a portfolio of matchmaking site brands including Parship, Elite Partner, and eharmony.

The purchase price offered represents a 30% premium to The Meet Group's 30-day volume weighted average price, and a 43% premium to the 60-day price.

The Meet Group CEO Geoff Cook said in a statement, "This transaction will allow us to tap new strategic growth opportunities by leveraging our video platform and ProSiebenSat.1's experience with content and entertainment."

ProSabienSat.1 has been seeking ways to offset its declining commercial TV franchise in Germany by increasing its digital presence, Reuters reports.

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

The Meet Group, Inc. Stock Quote
The Meet Group, Inc.
The Blackstone Group L.P. Stock Quote
The Blackstone Group L.P.
Match Group, Inc. Stock Quote
Match Group, Inc.

*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 analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/26/2022.

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.