IAC buys more of Tinder from early investor

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Tinder is a location based social discovery app that connects people with mutual interests. The app is used for both networking and dating purposes. Tinder has hit around 10 million users and has made millions of matches in over a year now. 

Bloomberg published a report that Tinder was valued at $5 billion after IAC acquired 10% more of the company from early Facebook employee and investor Chamath Palihapitiya for $500 million. Sam Yagan, the CEO of IAC’s Match Group, said this in response to the Bloomberg report: “I can confirm on the record that we did a transaction with Chamath, but this valuation is nowhere near the truth.”

Re/Code reports that Chamath Palihapitiya sold his 11 percent stake in Tinder to IAC for around $55 million, which values Tinder at $500 million — or around 10% of Bloomberg’s valuation report.

The Match Group oversees the dating apps at IAC, including Match.com and OkCupid.

Tinder especially grew in popularity when athletes used the app at Sochi. Around that time, the app was generating around 10 million matches per day.

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