Grindr Shareholders Propose $3.46 Billion Buyout to Take Dating App Private

A group of shareholders controlling over 60% of Grindr, the popular LGBTQIA+ dating platform, has proposed taking the company private in a deal valued at approximately $3.46 billion. The proposal is led by board members George Raymond Zage and James Fu Bin Lu, both of whom have been closely involved with the company’s operations for several years.

The offer values each share at $18, representing a 51% premium over the stock price before the announcement. The news caused Grindr’s shares to surge more than 22% in immediate trading. The shareholder group has already secured significant financing commitments, including multiple equity contributions and strong letters of intent, signaling that the buyout could move forward without funding obstacles.

Founded in 2009, Grindr has grown into a globally recognized platform serving millions of users in over 190 countries. The app has long been a central space for LGBTQIA+ dating and social networking, combining geolocation features with a user-friendly interface that has kept it relevant for more than a decade.

Zage and Lu originally acquired Grindr in June 2020, taking an active role in its strategic development. They led the company’s public listing in November 2022 and have maintained positions on the board since then, with Lu serving as chairman. The proposed privatization would give them more direct control over Grindr’s operations, potentially allowing for more agile decision-making and long-term strategic planning.

The proposed buyout comes at a time when Grindr, along with other major dating platforms, faces challenges in maintaining user growth. Companies like Tinder and Bumble have reported slower additions of new users, as many younger users are experimenting with smaller, specialized dating apps that focus on niche interests or use advanced matchmaking algorithms. This shift in user behavior has put pressure on established apps to innovate and retain engagement.

If the privatization deal goes through, Grindr’s leadership would gain more direct control over the company’s operations. Freed from the scrutiny and short-term expectations of public markets, the management could focus on long-term strategies such as expanding features, improving user privacy and safety, enhancing the app’s interface, and exploring new monetization options tailored to its global LGBTQIA+ audience.

Also Read: Grindr Owners Plan $3B Buyout of LGBTQ+ Dating Platform