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Match Group IPO Investors: Here's What Matchmaking Brands You'll Own

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Match Group IPO Investors: Here's What Matchmaking Brands You'll Own
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  • Match Group Inc (NASDAQ: MTCH) will begin trading on the NASDAQ on Thursday.
  • The company owns 45 different matchmaking brands.
  • It will be using all of its $537 million in IPO funds to pay off debts to its parent company.

Match Group is expected to begin trading on the NASDAQ on Thursday following the $12 pricing of its IPO on Wednesday. Retail investors will soon get a taste of the matchmaking company for the first time, so here’s a closer look at exactly what they will be getting.

The Brands

Match Group owns 45 different online matchmaking brands, including popular sites such as Match.com, OkCupid, Tinder, OurTime, Meetic, Twoo and ParPerfeito. Overall, the brands combined monthly active membership was 59 million as of the end of September.

The Company

Match Group raised about $537 million by selling 33.3 million shares in its IPO. In 2014, the company generated $148 million in earnings on $888 million in revenue.

The Catch

Unfortunately for IPO investors and future potential public market shareholders, not a single dime of the $537 million raised in the IPO will go to Match Group itself. Instead, the funding will be used to pay off debt to parent company IAC/InterActiveCorp (NASDAQ: IACI). IAC owns popular sites such as CollegeHumor, Dictionary.com, Investopedia, Ask.com and Vimeo.

In addition, IAC retains 98 percent voting control over Match Group, which limits the influence of other shareholders when it comes to decisions such as electing directors and paying dividends. Match Group accrued much of its debt via acquisitions, such as its recent $575 million purchase of PlentyOfFish.com in October.

IAC’s share price has fallen 17.4 percent over the past six months. The stock opened Thursday’s trading down about 1.5 percent on the day.

Disclosure: the author holds no position in the stocks mentioned.

Posted-In: Match Group Match IPO Match.comNews IPOs Top Stories Movers Tech Best of Benzinga

 

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