Tinder : US online dating giant Match Group has agreed to pay Tinder founders $ 441m (£ 331.4m) to settle a legal battle over the value of the dating app.
The founders of Tinder first sued Match and its former owner IAC in August 2018, claiming they had downplayed the app to avoid paying billions of dollars.
When Match and media giant IAC bought the founders in 2017, the company was estimated at $ 3bn.
But the founders of Tinder say it cost $ 13bn at the time.
The case has been pending since mid-November in the New York Supreme Court.
Match Group shares fell 2% on news to $ 127.93.
Match Group, which owns Match.com, OKCupid, Hinge, Meetic, PlentyOfFish, Ship and OurTime, costs $ 36.6bn today.
The plaintiffs, which includes the top ten current and former employees including Sean Rad, Justin Mateen and Jonathan Badeen, were given stock options on as part of their 2014 compensation.
But because Tinder is an independent company, they were not allowed to make money with their stock options and sell stocks in the open market.
Their total amount, equivalent to one-fifth of , can only be sold on Match and IAC on certain days, when the stock options will be announced independently.
Match and IAC paid the plaintiffs $ 600m at the time, equivalent to having a value of $ 3bn.
US Securities and Exchange Commission
The filing of Match Group with the US Securities and Exchange Commission (SEC) on Wednesday announced that the company intends to pay compensation using cash in hand.
Tinder is an online dating and geosocial networking application. Users anonymously “swipe right” to like or “swipe left” to dislike other users’ profiles, including their photo, brief history, and list of interests. Tinder uses a “dual login system” where both users have to “swipe right” to match before exchanging messages.
Sean Rad founded Tinder in 2012 at a hackathon held earlier in the incubator Hatch Labs in West Hollywood. In 2014, it registered approximately one billion daily switches and reported that users logged into the app on average 11 times a day. In 2015, Tinder was the fifth most expensive mobile app, and in 2019 surpassed Netflix in annual spending. By 2020, Tinder had 6.2 million subscribers and 75 million active users. Since 2021, Tinder has recorded more than 65 billion matches worldwide.
Recognizing the name MatchBox was very similar to Match.com Rad, its founders, and early employees renamed the company Tinder. The logo of the company with the fire theme remained unchanged during the renaming process.
2012: Prototype and presentation
During a hackathon in his first month, Rad introduced the concept of a dating app called Matchbox. Rad and engineer Joe Munoz built the MatchBox prototype and launched the “double-entry” dating app on February 16, 2012.
In March, founder Jonathan Badeen (formerly and later Tinder CSO), and Chris Gulczynski (designer and later Tinder CCO) joined Cardify.
In May, while Cardify undertook the Apple App Store authorization process, the team focused on MatchBox.
2013: Swipe feature improved
Tinder’s selection function, which was originally based on clicks, has changed to the company’s swipe feature. Badeen then planned an action that followed the temptation in the bathroom mirror.
In October 2014, users completed more than one billion switches a day, producing the same amount of twelve million per day. During this time, the average Tinder user typically spent about 90 minutes a day on the app.
Rad returned as CEO in August 2015.
2015 Tinder released its “Rewind”, its “Super Like” function, and dropped Tinder’s “Moments” and “Last Active” feature. January 2015 Tinder acquired Chill, developers of Tappy, a mobile messenger using “images and ephemerality”.
2016, Tinder was the most popular dating app in the United States, accounting for 25.6% of the market share for monthly users. Third-quarter revenue campaign for the company, Match Group CEO Greg Blatt described Tinder’s popular dating app as a “rocket” and “the future of the business.”