Tinder-parent Match to lay off 6% workforce amid investor pressure
Match Group, the parent company of popular dating apps Tinder, OkCupid, and Hinge, has announced plans to lay off approximately 6% of its global workforce. This decision is part of the firm's strategy to discontinue live-streaming services across its dating apps. The layoffs are in response to pressure from activist investors like Starboard Value, who are seeking changes within Match Group.
Investor influence on Match Group's sdecisions
The announcement follows activist investor Starboard Value's acquisition of a 6.6% stake in Match Group. Starboard has been urging the company to consider a sale if it cannot revitalize its business. Earlier in 2024, Elliott Investment Management and Anson Funds Management also pushed for changes at Match Group, indicating significant investor influence on the firm's strategic decisions.
Match Group surpasses Q2 revenue estimates
Despite a post-pandemic slowdown in growth and delays in launching new facilities for key apps like Tinder, Match Group managed to beat Wall Street estimates for second-quarter revenue. The company's revenue grew by 4% to $864 million, surpassing analysts' average estimates of $856.4 million, according to LSEG data. This growth was accompanied by a smaller decline in paying Tinder users than in the previous quarter.
Tinder's user base and download rate experience decline
Total paying users fell by 5% to 14.8 million, marking the seventh consecutive quarter of decline. Additionally, Tinder downloads fell by 12% globally, which marks its fourth consecutive quarter of declining downloads according to data from market intelligence firm Sensor Tower. These figures highlight the challenges faced by Match Group in maintaining its user base amid changing market dynamics.
