As mentioned above, e Dating (online and mobile dating service) is a .2B market and accounts for 75% of the total dating industry in the United States, where the other 25% accounts for matchmakers' services and singles' events.
In the online dating market, IAC has a 50% share with Match.com, Ok Cupid, Our Time, and Black People Meet; and in the mobile dating market, IAC has an incredible 94% share with brands like Tinder, Ok Cupid, and Match.com, as shown in chart 3 below.
On top of the dating business, TMG also has a successful, non-dating operation that includes fitness app Daily Burn, which was acquired in May 2010, and the popular education and test preparation services The Princeton Review, which TMG acquired in August 2014.
Before The Princeton Review acquisition, non-dating revenues accounted for only 2% of TMG's revenues; however, after the acquisition, non-dating revenues jumped 6 times to 12% of TMG's revenues, as shown in chart 2 below.
At Elite Singles we know that our members lead busy lives, with tight work schedules and active social lives.
Smartphones are crucial tools for their lives; certainly for personal affairs like online dating.
88% of TMG's revenues are generated in the dating business.
Let's take a deeper look into that industry and TMG's portfolio.
The spin-off of IAC's dating business joins a long list of successful spin-offs from IAC that created leading, independent companies while yielding an impressive return for investors, as shown in chart 1 below.
IAC’s Match Group is a market leader in the dating industry and has prominent growth prospects.
All these elements create an attractive investment opportunity that investors should explore.
IAC/Inter Active Corp is planning to spin-off its Match Group and pursue an IPO for the new company.
IAC has a history of successful spin-offs of significant business.