Starboard Value has recently acquired a stake in online dating company Match Group (NASDAQ:MTCH) and may push for a sale if the company can't achieve a turnaround, as reported by the Wall Street Journal on Monday. Following this news, Match shares surged more than 7%, reaching a three-month high.
Starboard has amassed more than a 6.5% stake in Match, joining other activist investors such as Elliott Investment Management. This increased activist interest comes as Match shares have declined about 12% in 2024, nearing their lowest levels in seven years.
Starboard intends to push for improvements at Tinder, which generates over half of Match's total revenue. The fund also sees potential in Hinge and other emerging apps through strategic cost-cutting and product development.
Additionally, Starboard advocates for more aggressive share buybacks and suggests that if Match can't make necessary improvements, it should consider going private.
Match Group, headquartered in Dallas, owns Tinder, Hinge, OkCupid, and Plenty of Fish, and has a much larger market value compared to competitors like Bumble and Grindr.
Despite a 9% revenue increase in Q1, Tinder experienced a 6% drop in paying users due to reduced consumer spending. Earlier in 2024, Elliott Management acquired a significant stake in Match, added two board members, and entered into an information-sharing agreement with the company.