After a 9% spike in the share price on Monday, shares in Match Group Inc (NASDAQ:MTCH) look set to open a further 8% higher on the back of activist interest in the Tinder owner.
Starboard Value acquired a 6.5% stake and is prepared to advocate for a sale if the company cannot achieve a turnaround, according to a report by the Wall Street Journal.
It intends to push for improvements to Tinder, which contributes more than half of Match Group’s revenue and sees potential in Hinge and other emerging apps through cost reductions and product development.
The report also highlighted that Anson Funds has increased its holding in Match since February and has engaged with the company’s top management.
Anson has previously called for a revamp of Match’s management and the integration of artificial intelligence into its operations.
Match Group, headquartered in Dallas, owns popular dating apps such as Tinder, Hinge, OkCupid, and Plenty of Fish, and boasts a larger market value than competitors like Bumble and Grindr.
Ahead of the bell, the stock was up $2.70 at $34.72.