The West Hollywood-based gay company may soon be taken private after its board chairman submitted a takeover offer and resigned from his position.
James Lew, who served on Grindr’s board of directors for more than five years, announced last week that he was stepping down to focus on his personal business endeavors. In October, Lu and fellow board member Ray Zage proposed taking Grindr private in a deal worth about $3.5 billion.
Mr. Lu and Mr. Zage jointly own 60% of Grindr’s outstanding shares and the remainder in cash for $18 each. In midday trading Monday, the stock was valued at about $15 per share.
“My decision to resign from the board does not reflect my views on Grindr,” Lew said in a letter to board members announcing his resignation. “I remain optimistic about Grindr’s long-term prospects, as demonstrated by this offer and my desire to take the company private in order to refocus and execute on opportunities to grow the business.”
Lu and Zage said they are interested in completing the transaction within the first few months of 2026. The two led the company’s initial public offering (IPO) in November 2022.
The board of directors established a special committee in October to respond to the unilateral delisting proposal. Manhattan Beach-based Skechers and Los Angeles-based fashion brand Guess also went private this year.
“There is no guarantee that this proposal will result in a transaction or other strategic outcome,” Grindle said in an Oct. 24 release.
Grindr released its latest financial results last week, reporting third-quarter total revenue of $116 million, a 30% increase year-over-year. The company’s net income for the quarter was $31 million.
Grindr executives said 2025 was the most successful year in the company’s history in terms of profitability and engagement growth. Other mainstream dating apps and their parent company Match Group have struggled to retain users.
Meanwhile, in Los Angeles, dating app startups are swarming the market, hoping to lure users with creative approaches to online hookups.
Grinder’s stock price has fallen more than 15% this year.
In a letter to board members, Lu said his offer represented valuable stock at a “substantial premium to shareholders.”
