Grindr Share Price Rises After Major Shareholders Withdraw Buyout

Shares of the LGBTQ-focused dating app Grindr climbed for a second straight day in New York trading after its largest shareholders – Raymond Zage III and James Fu Bin Lu – officially withdrew their plan to take the company private. The pair, who together own more than 60% of the company’s stock, ended talks after a special committee cited financing uncertainties in the proposed $18 per share deal.

The originally floated bid had valued Grindr at roughly $3.46 billion – a premium to its prevailing share price at the time. With the deal off, the shareholders indicated their intention to instead accumulate more shares via open market purchases and urged the company to expand its stock buyback programme, potentially paving the way for future dividends.

In their decision announcement, Zage and Lu referenced strong third-quarter results, low net debt relative to EBITDA, and recent share repurchases at prices above the proposed acquisition price as factors supporting their shift away from a takeover. The move appears to have reassured investors: Grindr’s stock rose about 2.6% at Wednesday’s close, extending a modest two-day rally to roughly 6.4%.

Despite the volatility, Grindr remains committed to its publicly traded status. Company leadership has expressed confidence in continued growth – buoyed by both advertising revenue and its subscription base – and reiterated expectations of delivering approximately 26% full-year revenue growth.