By Kelly Cloonan
Grindr has received a buyout offer from two of its top investors valuing the dating app at nearly $3.5 billion.
The investors, who together own more than 60% of Grindr's outstanding shares, proposed to take the company private by acquiring the rest of the company's outstanding shares for $18 apiece.
The proposed price represents a roughly 51% premium to Grindr's stock price on Oct. 10, the trading day before the pair informed the West Hollywood, Calif., company of their intention to explore a take-private transaction.
The stock rose 21% to $15.37 on Friday. Shares are down 14% this year.
The investors, George Raymond Zage III and James Fu Bin Lu, said they have received considerable initial interest from both debt and equity investors looking to participate in the deal and are confident that these sources will be fully sufficient to fund the acquisition.
Zage and Lu have been on the company's board since 2020. Lu is chair of the board.
Grindr confirmed buyout interest from the pair earlier this month. The company said at the time that while no formal offer had been made, its board formed a special committee of independent directors to evaluate any definitive proposal that may emerge.
The offer comes as the broader online-dating industry faces headwinds as Gen Z users shy away from the apps in favor of in-person interactions. Match Group, which owns apps such as Tinder, Hinge and OkCupid, has posted several consecutive quarters of declines in paying users, while Bumble has struggled to grow its premium subscriber base.
Grindr bucked that trend in its recent quarter, though, swinging to a profit as revenue and average monthly active users climbed. The app caters to a narrower demographic than most platforms, focusing on same-sex relationships and casual dating rather than long-term partnerships.
Write to Kelly Cloonan at kelly.cloonan@wsj.com
(END) Dow Jones Newswires
October 24, 2025 15:17 ET (19:17 GMT)
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