.July 16, 2024 6:47 PM

Starboard Value has acquired a stake in Match Group and may push for a sale if the company can’t achieve a turnaround. Match shares surged over 7% following this news, reaching a three-month high. Starboard now holds more than a 6.5% stake in Match, joining other activist investors like Elliott Investment Management. The fund intends to push for improvements at Tinder, which generates over half of Match’s total revenue, and sees potential in other emerging apps through strategic cost-cutting and product development. Starboard also advocates for more aggressive share buybacks and suggests going private if necessary.

Match Group, headquartered in Dallas, owns popular dating apps like Tinder, Hinge, OkCupid, and Plenty of Fish. Despite a 9% revenue increase in Q1, Tinder saw a 6% drop in paying users due to reduced consumer spending. Elliott Management also acquired a significant stake in Match earlier in 2024, adding two board members and entering into an information-sharing agreement with the company.