SEEKING ALPHA - Feb 29 - Momo Inc is known for its dating app Momo (launched in 2011) which is one of the most popular dating apps in China. The Chinese giant Alibaba Group has been backing Momo for a long time. They had a small stake in the company before Momo went public. In 2012, Alibaba Group took a 20% stake in the company for a valuation of $100M. In June 2015, CEO Yan Tang proposed to take the company private at $18.90 per share. The deal did not go through. Since the offer came in, Momo stock fell to $6.72 per share. When the offer was made, the stock was trading at $17. Last week, Momo appointed Alibaba Cofounder Joseph Tsai, and the stock jumped 31.5%. Momo will publish its Q4 2015 and full year results on March 15. Investors should wait till then to make any investments. Regardless of its app popularity, which boasts ~180M users, the company has remained unprofitable.
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Summarized by the Courtland Brooks team
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