Tinder Growth Sparks Interest in Possible Spin-Off of Match Group

The growth and popularity of dating app Tinder is sparking investor optimism about a possible spin-off of Match Group from IAC Interactive. Match Group, which also includes Match.com, OkCupid and How About We, is worth $5.3 billion, according to Barclays Internet analyst Chris Merwin. Barclays estimates that Tinder alone could be worth $1.1 billion by the end of 2015. Match Chairman Greg Blatt said in an investor conference call last month that Tinder lends itself to a particular type of sponsorship and advertising that some of its other products currently don't. Monetizing Tinder could increase Match's potential for profit, according to Needham & Company internet analyst Kerry Rice, and it's already taken steps toward that through monetization efforts in international markets.