Grindr’s majority owners are racing to take the LGBTQ+ dating app private after a sharp stock slide triggered a personal financial crunch, according to a recent report. The twist comes just two years after the company’s high-profile public debut through a blank-check merger.
At the center of the push are Raymond Zage, a former hedge fund manager now based in Singapore, and James Lu, a Chinese-American entrepreneur and former executive at Amazon and Baidu. The duo led the 2020 acquisition of Grindr for more than $600 million and later steered it onto the public markets in 2022.
Here’s where the pressure began. Zage and Lu, who collectively control over 60% of Grindr, reportedly pledged nearly all their shares as collateral for personal loans from a unit of Singapore’s sovereign wealth fund Temasek. When Grindr’s stock began sliding at the end of September, the value of those pledged shares fell below the loan amount. That undercollateralization triggered action: the Temasek unit seized and sold a portion of the shares last week.
What makes the timing striking is that the stock decline appears out of step with the company’s operating performance. Grindr’s profits rose 25% in the second quarter, though investors have been watching issues like executive turnover and narrowing margins. Despite those concerns, the core business hasn’t shown signs of collapse.
Now, Zage and Lu are said to be in talks with Fortress Investment Group to secure financing for a take-private deal at roughly $15 per share, valuing Grindr at about $3 billion. Fortress is majority owned by Mubadala Investment Company, which in turn is owned by the government of Abu Dhabi. Following news of the prospective bid, Grindr’s shares jumped.
If a deal materializes, it would mark a rapid reversal for one of the market’s most closely watched social apps, shifting Grindr from public scrutiny back into private hands. For investors, a $15-per-share offer would represent a targeted exit price; for users and advertisers, it could usher in a new chapter focused on operational stability and profitability. Talks are ongoing, and there’s no guarantee an agreement will be reached, but the outlines of a potential buyout are now clearly in view.
