Match Group Appoints New CEO for Tinder Amidst Activist Investment Moves

Match Group Inc. has officially named Faye Iosotaluno as the CEO of its flagship dating application, Tinder. Iosotaluno, stepping up from her role as Tinder's chief operating officer since August 2022, fills the CEO position after it remained vacant for nearly two years. In the interim, Match Group CEO Bernard Kim performed dual duties, managing both the parent company and Tinder.

Faye Iosotaluno's Rise to CEO

Before her promotion to CEO of Tinder, Iosotaluno had a substantive impact in various capacities at Match Group, including serving as chief strategy officer. Her promotion is seen as integral to the company's strategic turnaround efforts, which are being spearheaded by CEO Bernard Kim but haven't yet reinvigorated growth to expected levels.

The decision to elevate Iosotaluno comes on the heels of a Wall Street Journal report that activist firm Elliott Investment Management took a significant $1 billion stake in Match Group. This news saw the company's shares momentarily surge by 12%, although they settled with a 3% gain at the close of trading on Tuesday.

Addressing Subscriber Churn

Tinder, along with other Match Group-owned apps such as Hinge, OKCupid, and Match.com, has faced challenges in maintaining paid subscriber numbers. Each of the last four quarters has seen a decrease in subscribers, with Tinder specifically encountering a decline in the last two quarters. However, with new leadership, the company is expected to return to subscriber growth by year's end.

Since taking charge of Match Group in 2022, Kim, who has a background in gaming, has initiated several strategic changes. These include adjustments to app management, revamped product offerings, and the launch of higher-tier pricing options, with a notable $500-a-month premium Tinder tier. The company is also focusing on acquiring Gen Z users and introducing features that could help increase the average revenue per paying user.

As the new CEO at Tinder, Iosotaluno inherits a history of frequent changes at the executive level, with no top executive retaining their position for more than two years since the departure of co-founder Sean Rad in 2016. Her tenure as COO saw her pushing for updates to community guidelines that could enhance the app's focus on fostering genuine dating experiences.

While Match Group has refrained from commenting on Elliott's investment directly, the company has expressed its willingness to continue engaging with investors to bolster both user experience and shareholder value. Elliott has also chosen not to comment on their investment report.

Tinder, CEO, Investment