Technology
Monday, March 25th, 2024 4:00 pm EDT
Key Points
- Match Group adds two new directors and signs an agreement with Elliott Management.
- Laura Jones from Instacart and Spencer Rascoff, co-founder of Zillow, join Match Group’s board.
- Elliott Management, known for activism, secures insight into Match Group’s operations; Match shares decline as company faces leadership challenges and declining paying users.
Match Group, the parent company of Tinder and Hinge, has made significant changes in response to pressure from activist investor Elliott Management, which recently acquired a stake in the company. On Monday, Match announced the addition of two new directors to its board: Laura Jones, the Chief Marketing Officer of Instacart, and Spencer Rascoff, co-founder of Zillow. These appointments follow a period of “constructive” dialogue with Elliott, resulting in an information-sharing agreement that gives the activist investor deeper insight into Match’s finances and operations. Elliott Management, known for its activism in various sectors, has recently orchestrated board shakeups at companies like Crown Castle and Etsy. Match Group has faced challenges, with its shares declining 2% for the year and plummeting 79% from their 2021 peak. The company has struggled with leadership turnover and a decline in paying users, a crucial metric for investors. Despite these setbacks, Elliott expressed confidence in Match Group’s potential for significant value creation as a global leader in online dating. While the exact size of Elliott’s position in Match Group and its specific plans for a turnaround remain undisclosed, reports suggest that the activist investor holds an economic interest of around $1 billion in the company.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/03/25/match-adds-two-directors-in-deal-with-activist-investor.html
