Grindr Shareholders Propose $3.46 Billion Deal to Take The The App Private And Give Greater Control of Platform

Grindr‘s debut on the New York Stock Exchange was hailed as a landmark day for LGBTQ+ advancement. Before the opening bell–as queens from RuPaul’s Drag Race flanked a rainbow stage–NYSE president Lynn Martin celebrated the symbolism of the queer hookup app becoming a publicly traded company in the same neighborhood where protests against the government’s handling of the AIDS crisis broke out nearly 40 years ago.

via: Gayety

Two major Grindr shareholders have proposed a deal that could take one of the world’s most popular LGBTQ+ dating apps private, a move that values the company at about $3.46 billion.

According to Reuters, board members Ray Zage and James Lu, who are part of an investor group that already owns more than 60% of Grindr, made the offer in a proposal that would give them greater control of the platform. The bid, announced Friday, sent Grindr’s stock soaring nearly 19% by market close.

“A deal would give board members Ray Zage and James Lu greater control of the popular LGBTQIA+ dating platform with millions of users in more than 190 countries, at a time when online dating companies are under immense pressure to rekindle growth,” Reuters reported.

The offer comes amid what many industry observers are calling a crossroads moment for digital dating. Apps such as Grindr, Tinder, and Bumble have all faced slowing user growth and what analysts are calling “swiping fatigue,” as younger audiences turn toward niche, community-based, or AI-driven matchmaking alternatives.

Grindr, founded in 2009, was one of the first major social platforms designed for gay, bi, trans, and queer men, and its potential privatization would mark a major shift in how the company operates. Zage and Lu originally acquired the company in June 2020 and later led Grindr’s public listing in November 2022.

In a statement quoted by Reuters, Zage said he has continued to back the app financially and believes strongly in its future:

“We are strong believers in the long-term outlook for the company — I have been a consistent buyer of shares in Grindr since listing, buying over $200 million of shares on the public market and am also willing to contribute additional equity to this deal.”

The proposal values Grindr’s stock at $18 per share, representing “a 51% premium over the stock price on October 10, the day prior to when shareholders first informed the company of their intention to explore a going-private transaction,” according to the report.

Analysts at Raymond James called the offer “slightly below expectations,” but noted that a lack of sustained growth may have tempered investor enthusiasm. “We view today’s bid as the most likely to cross the finish line,” the analysts wrote.

The investor group proposing the buyout has reportedly “secured significant expressions of interest to participate in financing, including multiple highly confident letters and contributions of equity,” and said they are confident these will be “sufficient to fund the acquisition.”

Still, the process is far from complete. Grindr confirmed that its board has formed a special committee of ‘disinterested and independent directors’ to review any definitive proposals, including those with committed financing. “The committee is reviewing Friday’s unsolicited offer,” the company said.

Grindr’s stock has been volatile since going public in 2022, trading below its debut levels for much of the past year. Analysts have pointed to competition from newer dating apps and increasing public scrutiny over data privacy and content moderation as ongoing challenges for the platform.

If the proposal is accepted, the deal would take Grindr off the stock market just three years after its highly publicized debut, a move that could give Zage and Lu more flexibility to shape the company’s future without the pressures of quarterly earnings reports.