Back to top

Image: Bigstock

Match Group (MTCH) Acquires Online Dating App The League

Read MoreHide Full Article

Match Group (MTCH - Free Report) , the parent company of several popular dating apps, including Tinder and Hinge, has acquired the dating app, The League, per a TechCrunch report. The financial terms of the deal were not disclosed.

The League is a premium, niche dating app with a curated member base, focused on matching career-oriented users looking for serious relationships.

The app requires an application process where users are asked to submit their LinkedIn and Facebook profiles and set their preferences. Users are then waitlisted until they pass a screening algorithm and review process, which is designed to ensure that the app matches users with similar career goals and ambitions.

While it offers various subscription models, users are also able to experience the app as a ”guest” for free.

Continued Demand for Online Dating Bodes Well

The global online dating market size was valued at $3.7 billion in 2021 and is projected to register a compound annual growth rate (CAGR) of 6.9% from 2022 to 2028, per Grand View Research Report.

Such growth prospects bode well for Match Group as The League joins Match Group’s extensive roster of dating apps, including Tinder, Match, Hinge, Meetic, OkCupid, Pairs, PlentyOfFish, OurTime, Azar and more.

Tinder is the major source of revenues for Match Group. In the first quarter of 2022, direct revenues from Tinder jumped 18% year over year. The total number of payers for Tinder rose 17% year over year to 10.7 million, driven by continued product momentum and the slower-than-expected rollout of an initiative to eliminate age-based discounts. Tinder RPP increased 1% in the first quarter.

In the last reported quarter, Tinder launched a co-marketing campaign with Netflix for the dating reality TV show, Love is Blind: Japan, which resulted in a new user spike during the campaign period and strong engagement in the app.

The addition of new emerging brands including Azar and Hakuna, through the $1.7 billion acquisition of Hyperconnect, is a major positive. Azar has seen recent success with the addition of live streaming video into the 1:1 video chat app. Hakuna undertook partnerships with popular brands including Hello Kitty and Tokyo Avengers, which drove revenues and new user growth after their launch in Japan in the first quarter of 2022.

Single Town, Hyperconnect’s metaverse-based experience for dating and social discovery, is adding more dating features and continues to focus on scaling users. The launch of 1:1 chat and topic chat lists to help start conversations, as well as in-app events such as the “Single Town Charm Show,” have all been attracting a lot of attention.

The integration of Hyperconnect’s technology into the company’s other brands continues to progress well, with Match, Meetic, and Pairs, all successfully leveraging tech features from Hyperconnect into their products.

In March, Match Group announced that Garbo's new online background check platform will be made available to the general public in the United States and will also be launched to Tinder members via Tinder's Safety Center, marking a first-of-its-kind partnership for the dating industry.

Match Group’s acquisition of The League comes days after Alphabet’s (GOOGL - Free Report) Google countersued Match Group, accusing it of a breach of contract and negotiating in bad faith. The new lawsuit comes just two months after Match sued Google over its alleged monopoly power in Android app payments.

Zacks Rank & Stocks to Consider

Currently, Match Group has a Zacks Rank #3 (Hold). Match Group’s shares have tumbled 51.6% compared with the Zacks Retail and Wholesale sector’s fall of 26.1% in the year-to-date period.

Titan Machinery (TITN - Free Report) and America's CarMart (CRMT - Free Report) are some of the better-ranked stocks in the broader sector.

Titan Machinery sports a Zacks Rank #1 (Strong Buy) at present. Its shares have declined 30.5% in the year-to-date period. You can see the complete list of today’s Zacks #1 Rank stocks here.

America’s CarMart currently has a Zacks Rank #2 (Buy). The company’s shares have declined 15.1% in the year-to-date period.

Published in