Grindr Explores Private Acquisition Deal as Shares Recover Amid Financial Pressure

Grindr shares experienced a significant jump of over 10% following the recent report, despite having lost approximately 26% of their value so far this year.

According to a Monday report by Semafor, citing sources familiar with the situation, key insiders at the dating app Grindr are considering taking the company private after a significant share decline put the major owners in a challenging financial position.

Raymond Zage and James Lu, who hold controlling interest in Grindr, are reportedly in negotiations with Fortress Investment Group to secure debt financing for acquiring the dating app.

The report indicates that Zage and Lu have discussed a potential buyout price of around $15 per share, though this figure could be subject to change. At this proposed price, Grindr would be valued at approximately $3 billion.

Discussions have reportedly accelerated after a Temasek unit, which had extended personal loans to at least one of Grindr's owners secured by their shareholdings, seized and subsequently sold some of those shares last week.

When approached for comment by Reuters, both Grindr and Fortress Investment Group declined to provide any statements regarding the matter.

Grindr was previously owned by Beijing Kunlun Tech before being sold to San Vicente Acquisition LLC for over $600 million in 2020, following concerns raised by the US Committee on Foreign Investment regarding national security.