Match Group, the conglomerate of dating apps owned by Tinder, Hinge and more, had to pay Tinder employees $ 9.4 million in stock compensation this quarter due to the rapid growth of the application. That large number could have implications beyond the company's finances: it could be a consequence of the $ 2 billion demand that Tinder co-founder Sean Rad is facing.
Rad claims that Match intentionally underestimated Tinder in an effort to avoid paying billions of dollars in stock to the team's original employees. The bonds that were delivered this quarter suggest that Tinder's valuation has grown monumentally in the last two years.
Alex Heath reported in Cheddar that an independent valuation earlier this year valued Tinder at $ 10 billion, which would trigger performance based payments Although Match did not announce Tinder's valuation , the payments he revealed this week support Heath's report.
This new valuation, which occurs only two years after Match valued Tinder at $ 3 billion, could give some merit to Rad's case. In a commentary to The Verge Rad's lawyer, Orin Snyder, said that today's news is evidence that "IAC and Match stole the founders and early employees of Tinder in the amount of billions of dollars".
The group's spokeswoman, Justine Sacco, said the company does not "disclose information on internal valuations."
The Party's Chief Financial Officer, Gary Swidler, confirmed that the $ 9.4 million in shares went to Tinder employees in the company's earnings call today, and the figure is in the Company's Profit Release . The announcement follows Heath's report, which did not have the exact payment numbers.
Heath said that, at the time of Tinder's last assessment, Match awarded Tinder employees performance-based share packages to encourage them to continue working hard to grow. the application
In the months since Rad's lawsuit, Match countered it by claims that he had copied internal files and confidential information before leaving the company, which violated his employment contract. Match is seeking $ 230 million, and the Rad team has filed a motion to dismiss.