Tinder parent Match surges on report of activist interest from Starboard

Investing.com-- Starboard Value has become the latest activist investor to build a stake in online dating firm Match Group Inc (NASDAQ:MTCH) and will push for a sale if a turnaround is not possible, the Wall Street Journal reported on Monday. 

Shares of Match surged nearly 9% after the report, and hit an over three-month high of $34.77. 

Starboard built an over 6.5% stake in the firm, the WSJ report said, joining at least two other activist investors in Match, including Elliott Investment Management. 

The activist interest comes as Match shares slid around 12% so far in 2024, and were close to their worst levels in seven years. 

Starboard plans to call on Match to improve dating app Tinder, which accounts for over half of the firm's total revenue. The fund also sees opportunities in Hinge and other emerging apps, through cost-cutting and product development.  

Starboard believes that Match should enact more share buybacks, and that if it isn’t able to make the fixes, that it should consider going private. 

Match Group, based in Dallas, owns Tinder, Hinge, OkCupid, and Plenty of Fish. It is much bigger than direct competitors like Bumble and Grindr in market value. 

Despite Match seeing a 9% revenue increase in Q1, Tinder saw a 6% drop in paying users due to reduced consumer spending.

Elliott Management had acquired a significant stake in Match earlier in 2024, adding two new board members and also entering an information-sharing agreement with Match.