Topline
Shares of Grindr were up as much as 11% on Monday afternoon after Semafor reported shareholders are considering taking the company private in a deal that would value the LGBTQ dating app at $3 billion.
The Grindr app logo.
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Key Facts
Billionaire Raymond Zage and James Lu, majority shareholders in Grindr, are seeking to take the company private after some of their stock, nearly all of which they’d pledged for personal loans, was seized and sold by private lender Temasek.
The duo, who together own more than 60% of Grindr, are now in a “precarious personal financial position,” Semafor reported, and are discussing a buyout price of up to $15 per share, which would value the company at around $3 billion.
Zage and Lu are reportedly in talks to secure debt financing from Fortress Investment Group, a firm co-founded by billionaire asset manager and former BlackRock partner Wes Edens.
Shares were trading at $13.18 as of just after 1:45 p.m. EDT on Monday, up 10.2% on the day.
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Key Background
Grindr launched in 2009 as one of the first location-based dating apps for gay men and has since become the most popular LGBTQ mobile app worldwide. It was founded by Israeli American tech entrepreneur Joel Simkhai, who sold a majority stake to Chinese firm Kunlun Tech in 2016. Kunlun later purchased the remainder of the company in 2018 but was forced by the U.S. government to sell to an investment group after national security concerns were raised regarding data and privacy. U.S.-based San Vicente Acquisition LLC bought Grindr in 2020 for approximately $608 million and it went public via a $2.1 billion SPAC deal in 2022.
Big Number
Almost 15 million. That’s how many monthly active users Grindr has, the company says, calling itself the “global gayborhood in your pocket.”
Forbes Valuation
Wesley Edens is worth an estimated $2.3 billion and ranked as the 1,670th-richest person in the world. He cofounded asset manager Fortress Investment Group and became a billionaire when it went public in 2007. He is now the CEO of publicly traded liquefied natural gas company New Fortress Energy and co-owner of the NBA’s Milwaukee Bucks, Premier League soccer team Aston Villa and Portugal’s Vitoria Club Sport soccer club. George Raymond Zage III has an estimated net worth of $1.4 billion and is ranked No. 2,557 on Forbes’ billionaire list.He is the founder and CEO of Singapore-based firm Tiga Investments and the bulk of his wealth comes from his stake in Grindr.
Key Background
Grindr explores take-private after lender calls insiders’ loans (Semafor)
The Inside Story Of How A Former Hedge Fund Star Made His First Billion On Grindr (Forbes)