Match Group, the IAC-owned collection of internet dating services that filed for an IPO on Friday, is best known among younger adults for its popular Tinder dating app.
The app lets users make rapid-fire judgments about whether someone is date-worthy by swiping on a person’s picture on their mobile phone. It is particularly popular among millennials.
In fact, Match says that 62 per cent of its users are under age 35, as of June of this year — and much of that is probably due to Tinder.
But Tinder has one big risk: Facebook.
The app relies on people’s Facebook profiles for registration. If Facebook were to decide its relationship with Tinder isn’t working out anymore, Tinder could be in for some tough times.
Here’s what Tinder said about it in the risk factors of its IPO prospectus:
Lastly, in the case of Tinder, users currently register for (and log in to) the application exclusively through their Facebook profiles. Facebook has broad discretion to change its terms and conditions applicable to the use of its platform in this manner and to interpret its terms and conditions in ways that could limit, eliminate or otherwise interfere with our ability to use Facebook in this manner and if Facebook did so, our business, financial condition and results of operations could be adversely affected.