Famed activist investor Elliott has built a $1 billion stake in the company that owns Tinder and Hinge, report says
FilippoBacci/Getty Images
- Elliott Investment Management has built a $1 billion stake in Match, per The Wall Street Journal.
- It'll push the Tinder and Hinge owner to revive its tumbling stock price, the publication reported.
- Match shares are trading nearly 80% below the highs they hit during the pandemic.
Elliott Investment Management is pushing for a shake-up at Match Group, according to The Wall Street Journal.
The publication reported Monday that the famed activist investor has built a $1 billion stake in the Tinder and Hinge owner and will urge it to take steps to revive its slumping stock price.
Match shares ticked up 3% Tuesday but are still trading nearly 80% below the highs they hit in 2021 as COVID-19 lockdowns caused Americans to flock to dating apps.
The company's total market capitalization currently stands at just under $11 billion, per data from Refinitiv, down from a peak of over $40 billion nearly three years ago.
As well as its flagship brand Tinder, Match owns the dating apps Hinge, OKCupid, and Plenty of Fish.
In October, its fourth-quarter revenue forecasts came in well below Wall Street's expectations with slowing advertising, a strong US dollar, and the war in the Middle East all potential threats to its profitability.
Americans are also tightening their purse strings ahead of a potential recession this year, which could chip away at how much money Match can raise from dating app subscriptions.
Elliott is one of the world's largest activist investing funds, with a business model based around buying up shares in a public company to push for board-level change.
In 2023, it disclosed a $2 billion stake in tower operator Crown Castle and invested another $1 billion in the American oil refiner Phillips 66. It also waded into the battle between Ineos Group founder Sir Jim Ratcliffe and Qatari Sheikh Jassim Bin Hamad Al Thani for control of the English Premier League soccer giants Manchester United.
Elliott and Match did not immediately reply to Business Insider's request for comment.
Read more: How inflation and loneliness are killing Gen Z's dating game