Grindr Faces $3.5 Billion Take-Private Bid from Major Investors
Grindr Inc., the West Hollywood-based dating app for the queer community, is poised to return to private ownership following a buyout offer from two of its top investors valued at nearly $3.5 billion.
Chairman James Fu Bin Lu and board member George Raymond Zage III, who collectively own 60% of the company’s outstanding shares, proposed to acquire the remaining stock for $18 per share, as announced on October 24. This offer represents a roughly 51% premium over the stock price on October 10, the day before the proposal was initially made. Shares initially jumped 21% following the announcement, though currently trade around $13.89 as of October 30. This potential deal comes amid a broader trend of Los Angeles-area companies, including Skechers Inc. and Guess Inc., being taken private.
“We are pleased to submit this proposal, which represents a significant premium to recent trading prices and better positions the company for focused growth as a private entity,” Lu stated. Zage added that they “acquired Grindr in 2020 and have been intently focused on building a world class management team… We hope to have an active and friendly dialogue with our CEO George Arison and the board to find the best path forward.” The investors have indicated considerable interest from debt and equity investors to support the acquisition. The move could significantly impact the future direction and innovation within the LGBTQ+ dating app space.
Grindr’s board has formed a Special Committee of independent directors to evaluate the offer, and is committed to acting in the best interest of all stockholders. Lu and Zage are seeking a response by the end of October, with a goal of closing the deal in the first quarter of 2026. The company is scheduled to release its third-quarter earnings today, November 3, which may influence the board’s decision. You can find more information about Grindr’s financial performance on their investor relations website.
Officials stated they look forward to engaging constructively with the company and other shareholders to execute the proposal.
