Grindr has terminated discussions on a $3.46 billion take-private bid led by its largest shareholders, Ray Zage and James Lu, after the special committee said the bidders failed to provide clear details on financing and timing.
Market reaction: Shares fell ~10% premarket.
Zage and Lu collectively control 60%+ of outstanding stock.
Grindr said it remains confident in its strategy and maintains full-year revenue growth guidance of ~26%, despite industry-wide “swiping fatigue” impacting platforms like Match Group and Bumble.
The stock is down 22.4% YTD.
The halted deal would have given the two investors greater control of the LGBTQ-focused platform, which operates across 190+ countries.