Starboard Value’s plan to boost shareholder value at Match is thoughtful and complex.
provides dating products worldwide. The company's portfolio of brands includes Tinder, Match, The League, Meetic, OkCupid, Hinge and PlentyOfFish. Match's services are available in over 40 languages to users all over the world.Starboard is a very successful activist investor and has extensive experience helping companies focus on operational efficiency and margin improvement. Starboard has taken a total of 151 activist campaigns in its history and has an average return of 25.
Feeling out of the loop? We'll catch you up on the Chicago news you need to know. Sign up for the weeklyMatch Group is by far the global leader in online dating apps with over 45 brands, the most notable of which are Tinder and Hinge. Tinder is the most downloaded dating app in the world. It accounted for over 55% of the company's revenue at approximately $1.
In addition, Starboard is urging management to repurchase shares. While financial activism like a share buyback is not a well-received strategy on its own, it is regularly used to create shareholder value in conjunction with a more complex operational plan like Starboard offers here. Starboard thinks that there is no better use of cash for the company than to buy back stock at the price it is trading now, ahead of any operational improvements that could lift the share price.
Starboard often does its best activism from a board level and we would expect to see the firm looking for a seat here. While Match's director nomination window does not open until Feb. 21, 2025, don't let that fool you. Starboard will likely be talking to the company about a board seat well before then and could get invited on to the board sooner.
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