Investors Shouldn’t Be So Quick to Swipe Left on Tinder’s Owner – Facebook Plans to Start Dating Service By E. Winkler

Investors Shouldn’t Be So Quick to Swipe Left on Tinder’s Owner – Facebook Plans to Start Dating Service By E. Winkler

(Link): Investors Shouldn’t Be So Quick to Swipe Left on Tinder’s Owner

Excerpts:

The search for a soul mate has become a big business. In the U.S., one in three dates now begins online. The global market for online dating services—about 500 million people—is expected to reach 672 million by 2019, according to research by Jefferies.

The business has been lucrative for the biggest player, InterActiveCorp and its listed subsidiary, Match Group, which owns Tinder, OkCupid and Match .com.

That explains why shares of IAC and Match nose-dived 20% and 25%, respectively, when Mark Zuckerberg said Facebook would enter the dating scene.

… The conventional wisdom among investors is that Facebook can do to IAC and Match what it did to Snapchat when it began Instagram Stories. There certainly are risks, but Facebook  has a tougher task in the dating game.

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