According to a report by Semafor, the potential buyout is being discussed at around $15 a share.
Grindr (GRND) is reportedly in talks to go private after a steep decline in its share price placed one of its top shareholders under financial strain, according to people familiar with the matter cited by Semafor.
Grindr’s stock gained as much as 11% in midday trade. However, retail sentiment on Stocktwits continued to trend in ‘neutral’ territory amid ‘high’ levels of chatter.
The report said Raymond Zage and James Lu, who together control a majority of the dating app, are seeking debt financing from Fortress Investment Group to take Grindr private. It added that the discussions gained urgency after a unit of Temasek Holdings, which had issued personal loans to at least one of the two men backed by their Grindr shares, seized and sold some of those holdings last week.
The pair has discussed a potential buyout price near $15 a share, though that figure remains in flux, people familiar with the talks said. The report estimated that a deal at that level would value Grindr at about $3 billion.
Zage, a U.S. expatriate who now holds Singaporean citizenship, increased his stake in Grindr to more than 50% last month through share buybacks, and Lu, a Chinese-born U.S. citizen, has been a longtime business partner.
The move could stabilize Grindr’s stock, which has dropped over nearly 13% since late September despite a 25% year-over-year rise in second-quarter (Q2) profits. Corporate filings show Zage and Lu pledged a good share of their holdings to personal loans. The report said these were partially seized by SeaTown Holdings, a Temasek unit, last week after becoming undercollateralized.
Any transaction could also face scrutiny from U.S. regulators, given Grindr’s past ownership. The app, formerly held by a Chinese firm, was sold in 2020 after The Committee on Foreign Investment in the United States (CFIUS) raised concerns that Beijing could access user data for espionage or blackmail.
Even after Monday’s jump in price, Grindr’s stock is still down nearly 26% this year and has barely gained 1% over the past 12 months.
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