Facebook

Facebook’s Dating App Announcement Sends Match Stocks Downward

Facebook’s plan to offer online dating on the platform has had an impact on Match’s stock, with its shares trading down about 22 percent.

Match is the brand behind Match, Tinder, OK Cupid and Plenty of Fish. Facebook’s plan, according to its CEO Mark Zuckerberg, is for the dating functionality to be a standalone feature focusing on legitimate long-term relationships.

But Match seems to be taking the news in stride, and has even taken some jabs at the social media site’s recent data scandals, when it was discovered that the data of 87 million users may have been improperly shared with Cambridge Analytica.

In addition, Facebook also recently admitted that “malicious actors” were able to use search tools to discover the identities and collect information on most of its two billion users worldwide.

“We’re flattered that Facebook is coming into our space – and sees the global opportunity that we do – as Tinder continues to skyrocket,” Match Group CEO Mandy Ginsberg said in a statement to TechCrunch. “We’re surprised at the timing given the amount of personal and sensitive data that comes with this territory. Regardless, we’re going to continue to delight our users through product innovation and relentless focus on relationship success. We understand this category better than anyone. Facebook’s entry will only be invigorating to all of us.”

And Match’s parent company also took the time to poke some fun at Facebook, with IAC CEO Joey Levin saying, “Come on in. The water’s warm. Their product could be great for U.S./Russia relationships.”

And while Bumble is another competitor that may be affected by Facebook’s entry into dating services, the company says it’s “thrilled” about the news.

“Our executive team has already reached out to Facebook to explore ways to collaborate,” a Bumble spokesperson said in a statement. “Perhaps Bumble and Facebook can join forces to make the connecting space even more safe and empowering.”

——————————–

Latest Insights: 

Our data and analytics team has developed a number of creative methodologies and frameworks that measure and benchmark the innovation that’s reshaping the payments and commerce ecosystem. Check out the February 2019 PYMNTS Financial Invisibles Report

TRENDING RIGHT NOW

To Top