Dec 19, 2019

IAC to spin out Tinder parent company Match Group

Photo: Mat Hayward/Getty Images for Billboard

IAC (InterActiveCorp.), an internet media holding company, agreed on Thursday to separate one of its largest subsidiaries, Match Group, which houses several dating apps including Tinder.

Why it matters: IAC's stated goal has long been to build and/or acquire online services and to grow them to the point that they can be spun out independently, providing dual value to shareholders.

  • It's been teasing this strategy with Match Group since October.
  • Match Group’s stock was up around 5% in early-hours trading after the announcement.

Details: In a statement, IAC says that the agreement has been approved by the board of directors of IAC and Match Group, and was “recommended to the Board of Directors of Match Group by a special committee made up of disinterested directors.“

  • The company says that the transaction is expected to be tax-free, and will give IAC shareholders "direct ownership of Match Group."
  • Match Group shareholders will receive one share of stock from the new independent Match Group and $3 per share in consideration, per CNBC. IAC shareholders will receive $3 per share in cash.
  • The transaction is expected to close in the second quarter of 2020.

Bottom line: "We’ve long said IAC is the 'anti-conglomerate' – we’re not empire builders," said Barry Diller, chairman and senior executive of IAC.

  • "We’ve always separated out our businesses as they’ve grown in scale and maturity and soon Match Group, as the seventh spin-off, will join an impressive group of IAC progeny collectively worth $58 billion today."

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Photo: Isa Foltin/Getty Images for GQ Germany

Dating app Bumble reinstated actress Sharon Stone's account Monday after suspending it for several hours because users flagged it as fake, Bloomberg reports.

Why it matters: The mixup highlights how seriously dating apps are taking fraud after facing increasing scrutiny in 2019. The Federal Trade Commission is suing Match Group, the owner of Tinder and, among others, for using fake accounts to encourage users to sign up for subscriptions.

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Dating apps, menstrual trackers accused of violating European data privacy law

Illustration: Sarah Grillo/Axios

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Why it matters: These dating, prayer guidance and menstrual cycle or fertility tracking apps collect information from some of the most intimate parts of users' lives. The council argues that sharing this data violates a European data protection law that went into effect last year.

Go deeperArrowJan 15, 2020

Boeing CEO Dennis Muilenburg is out

Photo: Tom Williams/CQ-Roll Call, Inc via Getty Images

Boeing announced Monday that CEO Dennis Muilenburg has resigned effective immediately after its board of directors "decided that a change in leadership was necessary to restore confidence."

Why it matters, via Axios' Dan Primack: The aftermath of the aircraft maker's twin 737 MAX crashes, which killed 346 people, laid bare a culture in which safety concerns were discounted — and federal regulators were treated as little more than malleable rubber stamps.

Go deeperArrowDec 23, 2019