In a conference call with analysts in July, he said the company assumed Tinder could eventually earn million a year in earnings before interest, taxes, depreciation and amortization.
But the entire Match Group, by comparison, earned revenue of 8 million last year, about one-quarter of IAC’s billion revenue in 2013. He points out that Tinder is the first dating site to crack the top five in the last decade.
On one hand, it has never had stronger market penetration in the United States or abroad.
However, it is under intense pressure as free mobile services pop up and make it more challenging to generate a profit.
They have been pushing for IAC to spin off the Match Group as soon as possible, probably because they think the popularity of dating sites is about to crest.“We are not seeing a bubble as such, but growth is going to slow,” says Jeremy Edwards, an analyst with IBIS World, a market research firm.
Whether you're dating someone or in sales, you won't have much luck if you make everything about you.
How "unsexy" or "sexy" a product or service is will determine how easy or hard it is for the salesperson to sell it.
Whether you're online dating or trying to decide on which vendor to buy a product from, you won't pay much attention to the 50 messages that look and sound identical because you're overwhelmed and can't easily differentiate them.
As of the end of last year, IAC said it hosted 30 million active users among its dating properties, 3.4 million of which are regular paid subscribers.
The Match Group is now responsible for about one quarter of IAC’s overall revenue.“We are not just the acquirer of choice,” said Sam Yagan, chief executive of the Match Group, “we are the only acquirer.” But if IAC seems cocky, investors seem nervous.