Updated at 12:45 p.m. Pacific with Forbes report.

Tinder, arguably the most hyped dating app in existence right now, is now worth as much as $5 billion — on paper, that is.

This insanely high valuation originates from IAC’s decision to buy 10 percent of Tinder from venture capitalist Chamath Palihapitiya, Bloomberg reports. For IAC, the owner of popular Web brands like About.com and Vimeo, a 10 percent stake in Tinder will cost a whopping $500 million.

Forbes reports that Bloomberg’s $500 million price is inaccurate, but the deal is real. Re/code also reports that $500 million is likely Tinder’s entire valuation, citing “numerous sources close to the situation,” and that Palihapitiya sold his stake for closer to $55 million.

Tinder has 10 million users on its matchmaking service. At less than 2 years old, the app is now theoretically worth more than Facebook was willing to pay for Snapchat.

Swipe right if you agree.

Otherwise, consider reading about how poorly tech stocks are doing right now.

More information:

Tinder finds out who likes you nearby, and connects you with them if you're also interested. It all started with the realization that there are many apps that connect us with people we already know, but none that do a great job of help... read more »

IAC is a leading media and Internet company focused in the core areas of search, applications, online dating, local and media. Ranked by Fortune magazine's annual standing of the world's most admired companies in the Internet Services ... read more »

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