IAC Reportedly Buying 10% of Tinder for $500M

According to Bloomberg,

is buying more shares of Tinder, which puts the mobile-dating site's valuation at $5 billion. Shares of IAC jumped nearly six percent when news of this hit the Street, but then settled back then following a news report from Forbes. Shares of IAC closed up $0.45 per share. A couple of hours later Forbes came out saying that the $5 billion valuation was “not accurate – not remotely.” As soon as this hit, shares plummeted from the daily high. The rumor was based off of Chamath Palihapitiya's stake in the company, who reportedly sold his share to IAC, which put the valuation of the company at $5 billion. Chamath later came out and revealed on Twitter, “My Tinder sale for $500M is inaccurate. I sold my stake but value was much less. Thx @samyagan for official IAC pos'n.” Tinder is currently 20 months old, with reportedly no revenues. With this valuation, Tinder would almost be worth as much as IAC. IAC currently has a market capitalization of $5.7 billion.