Activist investor Elliott Investment Management has built a roughly $1 billion stake in Match Group (MTCH.O) and plans to push the Tinder dating app owner to take steps to improve its performance, the Wall Street Journal reported on Monday.
Elliott also plans to push Match to take steps to boost its languishing stock price, the Journal reported, citing people familiar with the matter.
However, it could not learn of Elliott’s specific demands.
“Our team regularly engages with investors, and will continue to work to create great experiences for our users and value for our shareholders”, a Match spokesperson said in a statement to Reuters.
Elliott did not immediately respond to a Reuters request for comment.
U.S. consumers are wary of spending on discretionary items such as dating app subscriptions due to economic uncertainties, prompting advertisers to keep their spending tight, which impacted Match’s portfolio of dating apps that include Hinge, OKCupid and Plenty of Fish.
Last October, Match forecast fourth-quarter revenue that came in short of market estimates and a month later, its smaller rival Bumble (BMBL.O) issued a similar outlook.
Match has rolled out several new features, including weekly subscription plans and new engagement and privacy features across Tinder and Hinge to revive its growth.
The company is currently valued at about $10.30 billion, following a 12% drop in its stock price in 2023. The shares have lost about 80% of their value since the highs they hit during the COVID-19 pandemic.