Grindr Inc. (NYSE:GRND) is one of the best falling stocks to buy, according to Wall Street analysts. On November 25, John Blackledge reiterated a Buy rating on Grindr, citing confidence in its valuation after the special committee rejected a $18-per-share take-private offer. He highlighted strong investor backing, with major shareholders considering new financing and Raymond Zage willing to add equity. Despite James Lu’s recent share sale, the rejection of the low bid and continued stakeholder support sign ...

Core Viewpoint - Grindr's two largest shareholders have withdrawn their $3.46 billion offer to take the dating app private due to financing concerns, despite previously offering a 51% premium over the stock price [1][2].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].

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Core Insights - Grindr, the LGBTQ social networking platform, is moving closer to becoming a private company following a buyout proposal from two board members and major investors [2][5]. Group 1: Buyout Proposal - Two board members, George Raymond Zage III and James Fu Bin Lu, have proposed to acquire Grindr for $18 per share, valuing the company at nearly $3.5 billion, which represents a 51% premium over the stock price on October 10 [2][3]. - The investors collectively own more than 60% of Grindr's outstanding shares, indicating strong backing for the buyout [3]. Group 2: Company Performance - Grindr has faced challenges in meeting Wall Street expectations, with its stock price dropping after disappointing fourth-quarter earnings and a lower-than-expected margin forecast for 2025 [5]. - The company generates revenue through subscription fees and advertising sales, and it has nearly 15 million monthly active users [4][5]. Group 3: Market Reaction - Following the announcement of the buyout proposal, Grindr's shares increased by nearly 19% on the day of the announcement, although they later fell by more than 4% to $14.45 per share [6].

Business & Finance - A former hedge fund star made his first billion (USD 1 billion) on Grindr [1] Industry Focus - The article discusses the inside story of how the individual achieved financial success [1]

Core Insights - Grindr's largest shareholders are exploring the possibility of taking the company private again after its public debut via a SPAC merger in 2021 [2][3] - The shareholders, Raymond Zage and James Lu, are in talks with Fortress Investment Group to acquire Grindr at $15 per share, while the stock closed at $12.72 on October 15 [3][4] - Grindr's stock has experienced volatility, peaking at $24.73 in June before dropping 12% and facing a 3% decline since early September due to a short position revealed by Ningi Research [8] Financial Performance - Grindr reported a 27% year-over-year increase in revenue for Q2 in its latest earnings report [9] - The company is introducing AI-powered features for its highest-paying users and has launched a telehealth service for erectile dysfunction medications [9] Shareholder Dynamics - Zage and Lu collectively control over 60% of Grindr's shares, with Lu serving as board chair and Zage on the board, prompting the establishment of a committee of independent directors to evaluate any potential buyout offers [4]

Core Viewpoint - Grindr's largest shareholders are exploring the possibility of taking the company private again after a significant stock price decline since its public listing in 2021 [1][2]. Shareholder Actions - Raymond Zage and James Lu, who control over 60% of Grindr's shares, are in discussions with Fortress Investment Group to acquire Grindr at $15 per share, while the stock closed at $12.72 on October 15 [2][3]. - A committee of independent directors has been established to evaluate any potential buyout offers due to the shareholders' significant control and board positions [3]. Stock Performance - Grindr's stock reached a peak of $24.73 per share in June 2023 but has since declined by 12%, with a 3% drop since early September [4][5]. - The decline in stock price was influenced by a report from Ningi Research alleging that Grindr is manipulating user numbers and diluting its core experience [5].

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Core Insights - Dating app Grindr is exploring a privatization deal with major shareholders Raymond Zage and James Lu negotiating with Fortress Investment Group for debt financing [1] - The proposed acquisition price is approximately $15 per share [1] - The acceleration of these negotiations follows the seizure and sale of some Grindr shares held by shareholders by a subsidiary of Temasek last week [1]

Core Insights - Grindr's majority owners are attempting to take the LGBTQ+ dating app private due to a stock decline that has led to a personal financial crisis for them [1] Group 1: Ownership and Financial Situation - The majority owners, Raymond Zage and James Lu, control over 60% of Grindr and had previously acquired the app for over $600 million in 2020 before taking it public in 2022 [2] - Zage and Lu pledged nearly all their shares as collateral for personal loans from a unit of Singapore's sovereign wealth fund Temasek, which became undercollateralized following a stock slide [3] Group 2: Business Performance and Market Reaction - Despite the stock decline, Grindr's profits increased by 25% in the second quarter, although there are concerns regarding executive turnover and narrowing margins [4] - The owners are in discussions with Fortress Investment Group to secure financing for a buyout at approximately $15 per share, valuing Grindr at around $3 billion, which led to a jump in shares following the report [5]