(Reuters) -Dating app Grindr said on Monday it has ended talks on a $3.46 billion take-private deal by its two largest shareholders, citing uncertainty over the deal's financing.
Shares of the company were down about 10% in premarket trading after a special committee said investors Ray Zage and James Lu, who together control more than 60% of Grindr's outstanding stock, had failed to provide clarity on timing and financing on the October bid.
"The special committee has been unable to obtain satisfactory
information about definitive financing," the popular LGBTQIA+ dating platform said in a statement.
The bidders did not immediately respond to a Reuters request for comment.
Grindr said it remained confident in its current strategy and its third-quarter performance, saying it is on track to deliver sustained value for shareholders and has maintained its forecast for full-year revenue growth of about 26%.
Online dating platforms, including Grindr and rivals Tinder-owner Match Group and Bumble, have been facing growth pressures as fewer people are signing up amid a rising tide of "swiping fatigue."
Shares of the California-based Grindr have fallen 22.4% since the start of the year.
Zage and Lu, who acquired Grindr in 2020 and took it public in 2022, have been significant investors in the company and previously served as members of its board.
The canceled deal would have given the bidders greater control of the LGBTQ-focused platform, which has millions of users across more than 190 countries.
(Reporting by Kritika Lamba in Bengaluru; Editing by Tasim Zahid)
