Why were Grindr's takeover talks terminated?

Grindr's board terminated takeover discussions because they could not obtain satisfactory information about definitive funding commitments.

What is Grindr's current financial outlook?

Grindr maintains its full-year revenue guidance at approximately 26% and shows strong paid user growth despite the failed takeover.

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Grindr Deal Collapses: Takeover Talks Terminated

Q: How has Grindr's stock performed recently?

Grindr stock closed down approximately 12% on Monday and is now over 50% below its year-to-date high.

27 Nov

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Summary

Grindr's board halted takeover discussions with major shareholders.
The company cited a lack of satisfactory funding commitment information.
Grindr stock is down over 50% from its year-to-date high.

Grindr Deal Collapses: Takeover Talks Terminated

Grindr's board has officially terminated takeover discussions with key shareholders Ray Zage and James Lu concerning a $3.46 billion take-private proposal. The company cited an inability to obtain satisfactory information regarding definitive funding commitments as the reason for ending negotiations. This development led to a significant downturn in Grindr's stock, which closed down approximately 12% on Monday and is now over 50% below its year-to-date high.

Despite the abrupt halt to the privatization deal, which removes a near-term catalyst and a potential $18 per share premium, Grindr's underlying business fundamentals remain robust. The company continues to lead the LGBTQ+ dating market, exhibiting strong network effects and superior growth, with paid user growth at about 17% year-over-year. This performance notably surpasses that of rivals like Match Group and Bumble, which are contending with user engagement challenges.