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Grindr’s Majority Owners Move to Take App Private With $15-a-Share Floor

Their plan follows a lender’s seizure of pledged stock after a sharp share-price slide.

Overview

  • The largest shareholders, Raymond Zage and James Lu, filed a 13D and engaged financial and legal advisers to explore a go-private deal.
  • Any proposal would be at no less than $15 per share, implying roughly a $3 billion valuation, and they have a preliminary, conditional debt financing offer of up to $1 billion.
  • Semafor and Reuters report the pair are in talks with Fortress Investment Group for financing, though the firms declined to comment.
  • A Temasek unit known as SeaTown seized and sold some of the owners’ pledged shares after loans became undercollateralized, accelerating the discussions.
  • Grindr has formed an independent board committee to evaluate any offer, while Zage and Lu together control more than 60% of the company.