HT TECH wants to start sending you push notifications. Click allow to subscribe

Gay dating app Grindr to go public in $2.1 billion SPAC deal

Gay dating app Grindr said on Monday it would go public through a merger with a blank-check acquisition firm

By: REUTERS
Updated on: Aug 22 2022, 12:11 IST
The gay dating app Grindr is all set to go public in $2.1 billion SPAC deal. (REUTERS)
The gay dating app Grindr is all set to go public in $2.1 billion SPAC deal. (REUTERS)

Gay dating app Grindr said on Monday it would go public through a merger with a blank-check acquisition firm - a deal that values it at $2.1 billion and features Tiga Investments CEO Raymond Zage on both sides of the transaction.

Grindr said its existing shareholders would own 78% of the company after the merger, which comes two years after China's Kunlun Tech Co divested it for $620 million due to U.S. national security concerns.

You may be interested in

Mobiles Tablets Laptops
Apple iPhone 15 Pro Max
  • Black Titanium
  • 8 GB RAM
  • 256 GB Storage
₹156,900
Check details
28% OFF
Samsung Galaxy S23 Ultra 5G
  • Green
  • 12 GB RAM
  • 256 GB Storage
₹107,999₹149,999
Buy now
23% OFF
Google Pixel 8 Pro
  • Obsidian
  • 12 GB RAM
  • 128 GB Storage
₹87,490₹113,990
Buy now
10% OFF
Apple iPhone 15 Plus
  • Black
  • 6 GB RAM
  • 128 GB Storage
₹80,990₹89,900
Buy now
33% OFF
Acer Aspire 5 A515 57G Laptop
  • Gray
  • 16 GB RAM
  • 512 GB SSD
₹51,480₹76,800
Buy now
30% OFF
Acer Swift Go SFG14 41 NX KG3SI 002 Laptop
  • Pure Silver
  • 8 GB RAM
  • 512 GB SSD
₹49,990₹70,999
Buy now
36% OFF
Asus VivoBook 15 X515JA BQ322WS Laptop
  • Transparent Silver
  • 8 GB RAM
  • 512 GB SSD
₹31,890₹49,999
Buy now
31% OFF
Acer Aspire 3 A315 24 NX KDESI 004 Laptop
  • Silver
  • 8 GB RAM
  • 512 GB SSD
₹30,990₹44,999
Buy now
33% OFF
Xiaomi Pad 6
  • Mist Blue
  • 6 GB RAM
  • 128 GB Storage
₹26,999₹39,999
Buy now
Lenovo Tab M10 5G
  • Abyss Blue
  • 6 GB RAM
  • 128 GB Storage
₹19,998
Buy now
22% OFF
Realme Pad 2
  • Imagination Grey
  • 6 GB RAM
  • 128 GB Storage
₹19,485₹24,990
Buy now
Honor Pad X9
  • Gray
  • 4 GB RAM
  • 128 GB Storage
₹16,998
Check details

While Grindr did not disclose the identities of its existing shareholders, Reuters previously reported that Zage had a 41% stake in the consortium that acquired Grindr. A source familiar with the matter said on Monday that Zage continues to be an investor in Grindr.

Tiga Acquisition Corp, the Singapore-based special purpose acquisition company (SPAC) that will merge with Grindr, is controlled by Zage.

Under the deal, Grindr will receive $284 million in cash from Tiga and up to $100 million in a forward purchase agreement.

Grindr and Tiga expect that their deal may require clearance from the Committee on Foreign Investment in the United States (CFIUS) which scrutinizes deals for potential national security risks, according to a copy of their merger agreement that was made public on Monday.

CFIUS ordered Kunlun to sell Grindr in 2019 over concerns that the personal data of U.S. users could be accessed or exploited by China's government.

It could not be learned if CFIUS had a role in Grindr's decision to explore a sale and merger with a SPAC. A spokesperson for the U.S. Treasury Department, that chairs CFIUS, did not respond to a request for comment.

Reuters reported last year that Kunlun and Grindr gave information to CFIUS about the transaction that contradicted disclosures to potential investors and Chinese regulators.

They told CFIUS that James Lu, a former Baidu Inc executive who was part of the consortium that bought Grindr and is now Grindr’s chairman, had no previous business relationship with a key adviser to Kunlun, even though the investor disclosures and Chinese regulatory filings stated otherwise.

Grindr chief executive Jeff Bonforte and Grindr chief operating officer Rick Marini will step down and a search for Bonforte's replacement is under way, a person familiar with the matter said on Monday.

Bonforte and Marini were part of investment firm Catapult Capital that competed against Lu and Zage to buy Grindr before they clinched an agreement to work together.

Atlanta Hawks co-owner Michael Gearon, another major shareholder who was part of the consortium that acquired Grindr two years ago, will continue to be invested in the company, the source said.

Grindr said in an investor presentation on Monday that it has 11 million monthly active users and that its revenue grew 30% last year.

The deal values Grindr at 27 times its adjusted 2021 earnings before interest, taxes, depreciation and amortization of $77 million. By comparison, shares of dating app peers Match Group Inc and Bumble Inc are trading at 22 times and 25 times their 2021 EBITDA, respectively, according to Refinitiv.

Catch all the Latest Tech News, Mobile News, Laptop News, Gaming news, Wearables News , How To News, also keep up with us on ,Twitter, Facebook, , and Instagram. For our latest videos, subscribe to our YouTube channel.

First Published Date: 10 May, 22:50 IST
Tags:

Sale

Mobiles Tablets Laptops
4% OFF
Samsung Galaxy S24 Ultra
  • Titanium Black
  • 12 GB RAM
  • 256 GB Storage
₹129,999₹134,999
Buy now
5% OFF
Apple iPhone 15 Pro Max
  • Black Titanium
  • 8 GB RAM
  • 256 GB Storage
₹137,990₹144,900
Buy now
13% OFF
Xiaomi 14
  • Matte Black
  • 12 GB RAM
  • 512 GB Storage
₹69,999₹79,999
Buy now
8% OFF
Apple iPhone 15 Plus
  • Black
  • 6 GB RAM
  • 128 GB Storage
₹82,600₹89,900
Buy now
33% OFF
Xiaomi Pad 6
  • Mist Blue
  • 6 GB RAM
  • 128 GB Storage
₹26,999₹39,999
Buy now
50% OFF
Lenovo Tab M10 5G
  • Abyss Blue
  • 6 GB RAM
  • 128 GB Storage
₹17,949₹36,000
Buy now
30% OFF
Realme Pad 2
  • Imagination Grey
  • 6 GB RAM
  • 128 GB Storage
₹20,339₹28,999
Buy now
50% OFF
Samsung Galaxy Tab A7 Lite
  • Silver
  • 3 GB RAM
  • 32 GB Storage
₹9,900₹19,999
Buy now
23% OFF
Infinix INBook X1 Neo XL22 Laptop Intel Celeron Quad Core 8 GB 256 GB SSD Windows 11
  • Blue
  • 4 GB RAM
  • 128 GB SSD
₹22,990₹29,990
Buy now
33% OFF
Asus VivoBook Pro 15 OLED K6500ZC L501WS Laptop
  • Quiet Blue
  • 16 GB RAM
  • 512 GB SSD
₹64,982₹96,990
Buy now
31% OFF
HP ZBook Firefly 14 G9 7M3U0PA Laptop
  • Nouvelle Silver
  • 16 GB RAM
  • 1 TB SSD
₹89,900₹129,999
Buy now
24% OFF
Asus ROG Zephyrus G14 GA401QM K2268TS Laptop
  • Moonlight White with AniMe Matrix
  • 16 GB RAM
  • 1 TB SSD
₹152,990₹201,990
Buy now
NEXT ARTICLE BEGINS