Interested in learning what's next for the gaming industry? Join gaming executives to discuss emerging parts of the industry this October at GamesBeat Summit Next. Register today.
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.
VentureBeat's mission is to be a digital town square for technical decision-makers to gain knowledge about transformative enterprise technology and transact. Learn more about membership.