IDEA – Oct 30 – A Financial Times source estimated eHarmony sold for $85 million, which seems shockingly low for such a prevalent dating brand. But, it’s confirmed, ProSiebenSat.1 did indeed buy eHarmony for $85 million. A steal, a real deal, by anyone’s assessment. This is really an investment in the future, and a bet on the looming effects of economies of scale, and harmonization of the platforms of Parship and eHarmony. They’ll run on a common platform in the future. I wonder which way the harmonization will go. More towards eHarmony, or Parship?
Apparently eHarmony will do roughly 80 million Euros or $90 million USD revenues, with zero profit in 2018. Customer lifetime value for the average eHarmony user stands at around $200, whereas Parship is seeing more like 500 Euros or $570 USD from their users. So it should be clear which way the harmonization will go. More info in this delectable PDF from ProSiebenSat.1.
Aided brand recognition for eHarmony stands above, Match and Tinder, and on par with the likes of Instagram, Twitter, American Airlines and Budweiser, according to an analysis by PEG/Nucom (ProSiebenSat.1) market research. Surely their brand alone would be worth a multiple of $85 million. I think this is a wake up call for the North American dating industry. Growth abounds in foreign markets but Match Group is kicking ass in the U.S.A. Take heed. Adjust your strategies. Look to greener pastures.