Tinder parent Match draws interest from Starboard; Anson seen increasing stake

Investing.com-- Starboard Value has become the latest activist investor to build a stake in online dating firm Match Group Inc (NASDAQ:MTCH) and will push for a sale if a turnaround is not possible, the Wall Street Journal reported on Monday. 

Separately, Anson Funds increased its stake in Match since February, and has also met with the company's top management, a source familiar with the matter told Investing.com.

Shares of Match surged nearly 9% after the WSJ report, and hit an over three-month high of $34.77. 

Starboard built an over 6.5% stake in the firm, the WSJ report said, joining at least two other activist investors in Match, including Elliott Investment Management and Anson.

The activist interest comes as Match shares slid around 12% so far in 2024, and were close to their worst levels in seven years. 

Starboard plans to call on Match to improve dating app Tinder, which accounts for over half of the firm's total revenue. The fund also sees opportunities in Hinge and other emerging apps, through cost-cutting and product development.  

Anson has called on Match to refresh its management and also look into incorporating artificial intelligence, earlier reports had shown.

Match Group, based in Dallas, owns Tinder, Hinge, OkCupid, and Plenty of Fish. It is much bigger than direct competitors like Bumble and Grindr in market value. 

Despite Match seeing a 9% revenue increase in Q1, Tinder saw a 6% drop in paying users due to reduced consumer spending.

Elliott Management had acquired a significant stake in Match earlier in 2024, adding two new board members and also entering an information-sharing agreement with Match.