Match Group, the online dating division of IAC/InterActiveCorp, including Match.com and Tinder, filed on Friday with the SEC for an IPO that we estimate could raise $500 million.
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The company, which will trade under the ticker “MTCH”, saw net earnings rise 17.2% past year, to $148.4 million.
A price has not been set.
Under its umbrella, Match Group has over 45 dating services and enjoys an active cumulative user base of 59 million each month. It increased 19 percent to $254.7 million in the second quarter, which ended in June. Blatt will take over both roles and Yagan, who cofounded OkCupid which was later acquired by Match, “is expected to continue to serve in a senior leadership position”. Facebook outages already have a history of taking a toll on Tinder, by leaving Tinder users unable to access their accounts. Annual revenue rose 10.6% to $888 million. If Facebook substantially changes its terms and conditions in a way that affects Tinder’s ability to onboard customers, it could negatively impact Match’s business.
While the company has traditionally focused on making money by charging for subscriptions, Match Group plans to make more of its revenue from ads.
Among its risk factors, Match noted the prevalence of cyber attacks as well as hacks perpetrated on companies that work with match.
Dating apps and sites have grown in popularity over the past few years with the availably instant messaging, geo-location and photo sharing services.
The filing reveals the size of all of Match’s dating properties.
InterActive Corp will retain control of over 50% voting rights after the IPO, thanks to its ownership of Class B shares.
The Match unit has solid results for the last few quarters at IAC though its internet applications and search business is its largest.
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J.P. Morgan Securities LLC and Credit Suisse Securities (USA) LLC are acting as the lead book running managers and Barclays Capital Inc., Citigroup Global Markets Inc., Jefferies LLC and RBC Capital Markets, LLC are acting as the joint bookrunning managers for the offering.
