Today was an interesting day for IAC.
Bloomberg reported it paid $US500 million to buy 10% of Tinder from an investor, the dating app it owns a controlling interest in. At that price, the implied valuation of Tinder would be $US5 billion.
IAC is only worth ~$6 billion, so this was some pretty stunning news!
Investors quickly started buying IAC stock, thinking there was an unknown $US5 billion gem buried in its depths. The stock went from being down for the day to popping nearly 5%.
But alas, reality set it. IAC told Forbes it bought a stake in Tinder, but Bloomberg’s “valuation is nowhere near the truth.”
We’ve heard from industry sources that don’t work at Tinder that the valuation is closer to $US500 million.