IAC/Interactive, which is controlled by media mogul Barry Diller, will spin off its dating business, The Match Group, which includes Tinder, OK Cupid and Match.com. Bobbi Rebell reports.
Cupid is striking out on it's own. IAC/Interactive, which is controlled by media mogul Barry Diller says it is spinning off its dating business, which includes Match, in an initial public offering. The Match Group has 40 brands including OK Cupid, mobile dating app Tinder, as well as online education business The Princeton Review, and fitness site and app Daily Burn. Greg Blatt, Chairman of The Match Group said: "The dating industry has come a long way since its inception, but the category remains underpenetrated. We believe the combination of our more established businesses such as Match, Meetic, and OurTime, and earlier stage businesses such as Tinder and OkCupid, creates an attractive combination of significant cash flow generation, strong margins and meaningful growth potential. " Shares of IAC/Interactive jumped when the news came out before the opening bell. Kathy Smith, who manages Renaissance Capital IPO ETF, says quote: "Investors may fall in love with this IPO if they see fast revenue growth and a path to profitability" IAC expects the IPO to include less than 20 percent of its common stock, and be completed in the fourth quarter. It won't be the first collection of dating sites to go public. Rival Spark Networks which owns J-date, ChristianMingle and others began trading 10-years ago.