Match Group shares surge as activist investor Elliott Management takes $1 billion stake in company
Tinder-owner Match Group saw an 11% jump in its shares on Tuesday morning, following reports that activist investing firm Elliott Management had acquired a roughly $1 billion stake in the online dating company.
The company, which also owns Match.com and other online dating platforms, has faced challenges in recent quarters after experiencing explosive growth in the early days of the COVID-19 pandemic. Match Group’s market cap stood at $10 billion on Monday, a far cry from its more than $45 billion market cap in 2021.
Elliott is expected to engage with Match management, although it remains unclear if this will include nominating its own directors, according to the Wall Street Journal.
Despite recent struggles, some analysts remain optimistic about Match Group. In December, the stock was named a top pick at JPMorgan, which pointed to a return to double-digit percentage growth in Tinder among other factors. However, the company reported a continued decline in so-called Tinder payers in November, and its fourth-quarter revenue outlook missed expectations.
Match Group has also seen significant turnover in its CEO position, with seven different leaders at the helm since 2012—well above the average CEO tenure of seven years.
Elliott Management has a track record of successful campaigns, with previous engagements at companies such as Salesforce, Pinterest, Crown Castle, and Phillips 66. Jesse Cohn, the Elliott managing partner leading many of these efforts, has held board seats at Citrix, eBay, and Twitter.
Spokespeople for Match Group and Elliott Management were not immediately available for comment.
The news of Elliott Management’s investment comes as Match Group continues to navigate a rapidly changing online dating landscape, with new features and models such as its recent announcement of a $500-per-month subscription offer from Tinder.