The Match Group—the IAC offshoot that owns dating sites like Tinder and OKCupid in addition to Match.com—is going public. According to its IPO filing with the SEC, the company is looking to raise $100 million to focus on product development, expanding its portfolio (i.e. buying up the competition), and increasing International presence.
Also mentioned in the Match IPO brief is the need to boost security—especially timely given the massive data breach that infidelity site Ashley Madison experienced this past Summer. Before the hack, which leaked an estimated 60 gigs of company data, parent company Avid Life LLC had planned for an expected $200 million IPO in London. Avid Life has since postponed plans to go public.
Ashley Madison isn’t the only dating site to cease plans for an IPO. Online platform Zoosk pulled their plans to go public back in May, after a reported three-year delay.
The Match Group does have the numbers on their side, however. Per The Wall Street Journal, Match posted nearly $890 million in revenue in 2014, an 11% increase over the previous year. Match properties—including Tinder, which is probably the most socially-recognizable of the group as of now—boasts 59 million active and nearly 5 million paid users. Though Match.com is the only fully pay-for-play platform (no pun intended), both Tinder and OKCupid offer bonus features not including in their free models.
Interestingly enough, Match does own non-dating properties as well—including The Princeton Review—which the company notes in their SEC filing is a way to learn more about the lifetime value of customer, and because sites like these rely on many of the same competencies as their dating products.
IAC would retain greater than 50% voting rights as a result of the Match IPO, due to Class B shares.