Grindr Inc. (NYSE: GRND) announced that its Special Committee has decided to terminate engagement with an unsolicited, non‑binding take‑private proposal submitted by majority shareholders Ray Zage and James Lu, who together own more than 60 % of the company’s common stock. The proposal, which offered $18 in cash per share, was presented to the committee on October 24, 2025, and the decision to withdraw was made on November 24, 2025.
The committee’s decision was driven by the proposers’ failure to provide satisfactory information regarding the financing of the $18‑per‑share offer. Without clear evidence that the required capital could be secured, the committee concluded that continuing negotiations would not be in the best interests of the company or its shareholders. The $18 offer implied a company valuation of roughly $3.46 billion, a premium over the then‑trading price of about $13.84 per share.
Grindr’s most recent quarterly results, released on the same day, showed revenue of $115.77 million, up 30 % year‑over‑year, and earnings per share of $0.16, beating analyst expectations of $0.12 by $0.04 (a 33.3 % beat). The company’s adjusted EBITDA reached $55 million, a 47 % margin, and it raised its full‑year 2025 adjusted EBITDA guidance to $191 million–$193 million. In contrast, the prior quarter’s revenue of $104 million and EPS of $0.10 fell short of expectations, reflecting a modest decline in user‑acquisition spend and a temporary dip in premium‑subscription uptake.
Management emphasized confidence in the company’s long‑term strategy. CEO George Arison highlighted the strong performance of the app’s core metrics—average monthly active users, paying‑user growth, and average revenue per paying user—while noting that the company’s AI‑driven product roadmap is expected to drive further monetization. Special Committee Chair Chad Cohen stated that the board remains committed to creating value through organic growth and capital allocation, citing the company’s robust financial position and strategic focus on product innovation and international expansion.
Investors reacted negatively to the withdrawal, citing the loss of a premium liquidity event. The decision underscores the board’s belief that the company’s intrinsic value, driven by its user base, AI capabilities, and growth trajectory, will ultimately exceed the $18‑per‑share offer. The move also removes uncertainty around a potential change in ownership structure, allowing Grindr to continue operating as a public company and pursue its strategic priorities without the distraction of a pending transaction.
Grindr serves a global LGBTQ+ community with more than 15 million average monthly active users across 190+ countries. The company’s focus on AI integration and product innovation positions it to capture additional revenue from premium subscriptions and in‑app advertising, while its international expansion strategy aims to broaden its user base and diversify market risk. The board’s decision to reject the take‑private proposal signals confidence in this growth path and a commitment to maximizing shareholder value through continued operational excellence.
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