Grindr's two top shareholders scrap $3.46 billion take-private bid after board ends talks

Core Viewpoint - Grindr's two largest shareholders have withdrawn their $3.46 billion offer to take the dating app private due to financing concerns, despite previously offering a 51% premium over the stock price [1][2]. Company Developments - The special committee of Grindr ended negotiations, stating they could not obtain satisfactory information about definitive financing [2]. - Shareholders Ray Zage and James Lu, who own over 60% of Grindr, expressed confidence in the company's ongoing strategy and highlighted a projected full-year revenue growth of about 26% [3]. Financial Performance - Grindr's shares have decreased by 29% this year, attributed to challenges in the dating industry, including slowing user growth and rising "swiping fatigue" [3]. - Despite the decline, Grindr's stock has outperformed competitors Match Group and Bumble [3]. Shareholder Actions - Following the withdrawal of the buyout offer, Zage indicated plans to purchase additional Grindr shares and urged the board to consider expanding stock buybacks and dividends [2]. Historical Context - Grindr was acquired in 2020 from Kunlun Tech after U.S. regulators raised national security concerns, and the company went public through a SPAC merger in late 2022 [4].