Grindr Inc. (GRND) received a buyout bid from its largest shareholders, George Raymond Zage III and James Fu Bin Lu, who have proposed to acquire the remaining outstanding shares of the company that they do not already own.
Together with their affiliated entities, the two investors currently hold more than 60% of the LGBTQ+ social networking platform’s common stock.
The offer values Grindr at $18 per share, representing a roughly 51% premium over its October 10 closing price. The proposed transaction would buy out all minority shareholders in a going-private deal.
Following the announcement, Grindr stock traded over 22% higher on Friday afternoon. On Stocktwits, retail sentiment around the stock remained in ‘bullish’ territory amid ‘extremely high’ message volume levels.
"We are strong believers in the long-term outlook for the company—I have been a consistent buyer of shares in Grindr since listing, buying over $200m of shares on the public market, and am also willing to contribute additional equity to this deal.”
-George Raymond Zage III
The proposing shareholders have already received multiple “highly confident” commitments for financing and equity contributions, ensuring sufficient capital to complete the acquisition.
“Further, we have received considerable initial interest from both debt and equity investors in participating in this opportunity,” Zage added.
On October 14, the company's board confirmed receipt of a letter from both shareholders expressing interest in exploring the possibility of acquiring Grindr.
Grindr stock has lost over 13% year-to-date but has gained over 16% in the past 12 months.
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