Blackstone Group is Getting into the Dating Game

The private equity giant is buying a large stake in MagicLab

MagicLab, a developer of dating and social networking apps, has a new beau. Private equity giant Blackstone Group is buying a $3 billion stake in the company. MagicLab’s properties include Bumble and Badoo.

Under terms of the deal, MagicLab founder Andrey Andreev will step down from the company he founded in 2006. He will also sell his stake in the firm.

“We’re excited to invest in MagicLab, which is a pioneer in the fast-growing online dating industry,” said Jon Korngold, Head of Blackstone Growth. “They have a highly talented team and strong set of platforms, including Bumble, which was built on a commitment to inclusion and female empowerment. This partnership is a perfect example of Blackstone’s ability to use its scale, long-term investment horizon, and [a] deep bench of operational resources to help entrepreneurs take advantage of transformational growth opportunities in order to create global industry leaders over time.”

Blackstone Group and Online Dating

Meanwhile, online dating has evolved into a massive business thanks to the widespread adoption of Smartphones. Analysts currently estimate that the sector could hit $12 billion by 2020.

Now with Blackstone taking a big stake, it assures that Badoo will remain outside of the control of Barry Diller’s IAC/Interactive (IAC).

IAC attempted to buy Bumble in 2017. However, IAC received a reply via an advertisement in the Dallas Morning News that didn’t signal mutual feelings.

“We swipe left on your multiple attempts to buy us, copy us, and, now, to intimidate us,” the ad said. “We’ll never be yours. No matter the price tag, we’ll never compromise our values.”

Finally, Whitney Wolfe Herd, co-founder of the female-friendly dating app Bumble, will take over as MagicLab’s CEO. Prior to founding Bumble, Herd also co-founded Tinder. She also suggested funding Chappy, the gay dating app owned by Badoo.

Related: Blackstone Group May Employ Hostile Takeover with Unizo Holdings

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Alt Insights

January 16, 2020

ESG: Lately-turned Tesla Bull Jim Cramer Adds Fink To The Mix

ESG: Lately-turned Tesla Bull Jim Cramer Adds Fink To The Mix
Shape

Latest Alternative Investment News

Digital Assets: Ray Dalio – Cash is trash; BTC is Untouchable; Libra Maybe; Stocks are Good; Gold is Best
January 24, 2020     Digital Assets, News

Ray Dalio, a long time bitcoin sceptic, again panned the cryptocurrency at Davos. Cash is trash; BTC is Untouchable; Libra Maybe; Stocks are good; Gold is Best, he said.

American Banking Association: M&A Expectations for 2020
January 24, 2020     Community Banking, Latest News, News

The American Banking Association has released its outlook for merger and acquisition activity in the banking sector in 2020. The ABA finds that the forces contributing to the consolidation of…

Private Equity: BGH Capital Makes Better Offer For Village Roadshow
January 24, 2020     News, Private Equity

Private equity firm BGH Capital has thrown its hat into the ring to acquire Village Roadshow. On Friday, BGH made an unsolicited counter-offer of $4 per share for Village. A…

Digital Assets: Square Granted US Patent For New Currency Exchange Network Including Cryptos
January 24, 2020     Digital Assets, News

Payments processor Square won the US patent number 10,540,639 titled “cryptocurrency payment network” for a new network that could seamlessly process crypto-to-fiat transactions and the reverse. The transactions would occur…