One particular failed Tinder match is gaining more attention than most. The company's co-founders are suing the app's now-owner Match Group and parent IAC/Interactive (IAC) over an under-valuation of the company during Match Group's buyout of the founders in July 2017. The Deal's David Marcus reports that a $3 billion valuation of Tinder was obtained under "false financial projects," according to co-founder Sean Rad, Jonathan Badeen and Justin Mateen. A suit in New York State Court seeking $2 billion, "describes a tense relationship between team Tinder and its corporate parent and claims that executives at Match and IAC schemed to seize control of Tinder, oust Rad and deprive him and his colleagues of the economic fruits of a smartphone application that has 'transformed the way an entire generation makes new romantic connections," writes The Deal's David Marcus today on TheStreet's sister publication. There's no doubt that a $3 billion valuation for Tinder is a steal, but at the time, it wasn't clear just how influential the app would be. To that end, at the time, an Oppenheimer analyst came up with a $2.88 billion valuation only a few months earlier.
Salesforce (CRM) was the talk of Wall Street on Thursday as the company blew away earnings expectations, but saw its shares fall following the report. Under the surface, some may be waiting for the company's most recent acquisition to pan out. Analysts are bullish on long-term vision for Salesforce's integration with software platform MuleSoft, explains Real Money's Kevin Curran, but the success of the integration is still challenging to quantify. Salesforce stock fell 1.75% Thursday, despite a positive contribution of $122 million in revenue from its largest-ever acquisition, MuleSoft, a software company which aims to integrate older on-premise data centers to the cloud. In raw number terms, the company is helping expand the platform greatly as company reported that the Salesforce platform grew 32% in the second quarter, but an even more staggering 54% when including MuleSoft. The new subsidiary, however, remains a target for caution based on the uncertainty of its short-term revenue integration, according to RBC Capital Markets AVP Yaoxian Chew, adding that billings are "lumpier" due to the integration's lag.
Markets Today: Stocks fell in late trading on Thursday, Aug. 30, as reports emerged that President Trump wants to go ahead with tariffs on $200 billion in imports from China next week. Markets had touched records earlier as the U.S. appeared to be warming to a deal with North American counterparts Canada and Mexico. China set investors in a bit of a selling mood on the close it appeared. All three major indexes closed in the red.
Michael D. Brown, Assignments Editor, TheStreet Inc.
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