Starboard is in ongoing talks with Match Group and its board regarding ways to boost its profitability and cut costs, the activist fund’s boss Jeff Smith said in a letter.
faces an activist investor campaign that wants the dating app giant to either overhaul its business or explore going private.
Smith argued that Tinder has suffered from a “lack of innovation” that has hurt its growth despite a base of nearly 10 million paid subscribers.“Despite Match’s enviable market position and attractive business characteristics, the company’s share price has significantly underperformed the market since its separation from its former parent, IAC, in July 2020,” Starboard’s Smith said in the letter.
Match Group’s stock price has plunged nearly 70% over the last four years despite gains in the broader stock market, the letter noted.The company has struggled with mounting competition from the likes of Bumble and other rival dating apps, while its user base has dwindled as consumers cut back on extra expenses during economic uncertainty.
“We believe there is no better use of cash for Match than repurchasing its own shares at this level,” the letter said.
Tech Activist Investors Dating Apps Match.Com Stocks Tinder
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