SEEKING ALPHA - Aug 17 - A spin off of The Match Group is in the works. The company has strong growth potential. Data from IBISWorld shows that online and mobile dating services comprise 75% of the U.S. dating services industry, followed by matchmakers (14%) and singles events (7%). A true disruptive innovation is Tinder. The app is making online dating in general more mainstream. Many analysts have doubt about Tinder's profitability. Most of young singles are not interested in paying for online dating. The fact that there is only a meager % of users who do pay should not weaken the app's profitability. Tinder is focused on younger adults but is becoming more popular among older adults while retaining current members who become older and/or directing them to other IAC's dating services. There are also more streams of revenue that the company can utilize and has discussed implementing. The purposes of the app are expanding. "We want Tinder to be the start of every new friendship, relationship, connection and business relationship", said CEO Sean Rad.
by Nicholas Vidger
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