Grindr Stock Soars on $3.5 Billion Privatization Deal as Majority Owners Signal Strong Confidence

The LGBTQ dating app experienced its most impressive trading session in three years as majority shareholders George Raymond Zage III and James Lu moved forward with taking the company private. Trading on the New York Stock Exchange reflected strong investor optimism, with shares climbing 18.9% to close at $15.06 following the announcement of their acquisition proposal.

The Buyout Proposal Details

Zage and Lu, who collectively control 64% of Grindr, have proposed acquiring remaining minority stakes at $18 per share—a significant move from the stock’s trading level of $11.92 on October 10, representing a 51% premium to pre-announcement prices. The offer also exceeds by 20% the minimum valuation threshold the shareholders had initially targeted, reflecting confidence in the platform’s potential.

The transaction values the entire company at $3.5 billion, according to the official statement released Friday. “We are strong believers in the long-term outlook for the company,” Zage remarked, emphasizing his personal commitment by noting he had purchased over $200 million in shares since the public listing and stood ready to inject additional capital into the deal.

Financing and Market Reception

The majority shareholders have already secured $1 billion in preliminary and conditional debt financing, with additional investor interest reportedly expressed by both equity and debt participants. Lu, serving as Grindr’s chairman, stated: “We look forward to engaging constructively with the company and other shareholders in executing on our proposal,” positioning the privatization as a pathway for “focused growth as a private entity.”

Company Background and Market Performance

Founded in 2009 as an early location-based mobile platform for the LGBTQ community, Grindr has grown into the world’s most downloaded dating app in its category, commanding over 14 million monthly active users globally. The platform’s journey to public markets began in 2020 when Zage partnered with Lu—co-founder of the American buyout firm Joffre Capital—and J. Michael Gearon Jr. to acquire the application for approximately $608 million.

The path accelerated through a subsequent merger of Grindr with Zage’s blank check company in a transaction valued at $2.1 billion, ultimately leading to its November 2022 NYSE listing. Shares initially surged over 200% upon debut, propelling Zage into billionaire status and securing him recognition among Singapore’s 50 wealthiest individuals, with his Grindr stake comprising the majority of his estimated $1.5 billion net worth.

Recent Financial Performance Context

While shares have retreated approximately 60% from listing peaks this year, the company’s operational metrics have improved. Net profit expanded 25% to $17 million in Q2 compared to the prior year period. The previous year saw a wider net loss of $131 million, primarily driven by non-cash warrant liability adjustments on $345 million in revenue that grew by one-third. The company successfully completed warrant redemption in February of this year.

The privatization offer reflects the majority owners’ conviction that the platform’s value proposition—with its established user base and improving profitability trajectory—positions better for sustained development outside public market scrutiny.