For a brief moment following a Bloomberg report, the Internet thought hot dating app Tinder was worth $US5 billion.
That’s off by a lot, an IAC executive tells Forbes and sources tell Business Insider.
OKCupid co-founder Sam Yagan, who works for IAC, tells Forbes’ Jeff Bercovici: “I can confirm on the record that we did a transaction with Chamath, but this valuation is nowhere near the truth.”
Two LA startup executives who aren’t directly tied to Tinder tell Business Insider that IAC purchased a chunk of Tinder from former Facebooker and investor Chamath Palihapitiya for $US50 million at an estimated $US500 million valuation. Bloomberg initially reported the sale price at $US500 million for a $5 billion Tinder valuation.
Chamath Palihapitiya just debunked the Bloomberg report in a tweet too:
IAC already owned a majority stake in the app it helped incubate before the deal. Tinder is a dating app that works a lot like hot-or-not. In January, Tinder was creating 10 million matches for its users per day.
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