Match Group

History

2023

Plan for leaving the Russian market

Tinder owner Match Group said in May 2023 that it would leave Russia by June 30, citing the need to protect human rights: "Our brands are taking steps to restrict access to their services in Russia and will complete their withdrawal from the Russian market by June 30, 2023."

Downsizing 8% of employees

On February 1, 2023, Match Group, which owns Tinder, Hinge and OkCupid services, announced an 8% reduction in staff globally. This is due to the deteriorating financial situation, the crisis in the United States and the current macroeconomic situation.

The layoffs were announced by Match Group chief financial officer Gary Swidler. According to him, this measure is aimed at reducing costs and optimizing the structure of the company. Marketing costs should be reduced. Employee reductions have already begun in the United States, and in the future will affect other regions. In particular, it is planned to lay off workers in areas such as recruiting.

Tinder owner fires 8% of employees

Our cost-cutting initiatives aim to optimize headcount and reduce overhead, including office space costs and professional performance rewards, "Swidler stated.

According to documents sent to the supervisory authorities, at the end of 2021, Match Group had about 2,500 full-time employees and 40 part-time employees. Thus, as part of the reorganization, approximately 200 people will lose their jobs. Severance costs and other payments in the fourth quarter of 2022 amounted to approximately $3 million. The company said it expects additional costs of $6 million related to the reorganization of the business.

On January 31, 2023, Match Group published its financial performance. The company's revenue in 2022 amounted to $3.19 billion. This is 7% more than the result for 2021, when about $2.98 billion was received. Tinder generated $1.79 billion in revenue. Net profit in 2022 reached $361.95 million against $277.72 million a year earlier.^[1]

2022: Fine of 2 million rubles for refusing to localize data of Russians

On July 28, 2022, the World Court of the Tagansky District of Moscow fined Match Group, which develops the popular dating service Tinder, 2 million rubles for refusing to post personal data of Russians on servers in the Russian Federation.

According to Interfax, Match Group was found guilty under Part 8 of Art. 13.11 of the Administrative Code of the Russian Federation (failure by the operator when collecting personal data to ensure the recording, systematization, accumulation, storage of personal data of citizens of the Russian Federation using databases located on the territory of the Russian Federation). Initially, she was threatened with a fine of up to 6 million rubles.

Tinder owner fined 2 million

According to the agency's correspondent, who was present in the courtroom, Match Group representatives said that the company did not admit guilt in the alleged offense, and asked the court to stop the administrative proceedings due to the lack of composition.

It is noted that Roskomnadzor he sent a requirement to localize the personal data of Tinder users, but the company - the owner of the application did not do this. Then an administrative protocol was drawn up.

According to the legislation in force by July 2022, foreign companies without a physical presence in Russia must localize the data of Russian users if they work in the country. According to Roskomnadzor, by 2022, about 600 foreign companies agreed to localize the data of Russians in the country. Among them, in particular, Apple, Microsoft, Samsung, LG and others.

In April 2022, Tinder turned off paid options for Russian users, such as account promotion, the ability to see who liked the user's questionnaire, daily collections of top profiles. After that, the audience of the service in Russia began to decline.^[2]

2021: $1.73 billion purchase of video technology developer Hyperconnect

In mid-February 2021, Match Group, which owns the dating app Tinder, announced the acquisition of Hyperconnect for $1.73 billion. The company will pay for the purchase with its own cash and shares. The deal is expected to close in the second quarter of 2021 after receiving regulatory approvals. Read more here.

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