Grindr Inc (NYSE:GRND) shares surged 22.7% in the early afternoon on Friday after the LGBTQ+ dating and social networking app received a formal buyout proposal from its controlling shareholders, potentially taking the company private.
The offer, detailed in a filing with the Securities and Exchange Commission (SEC), comes from chairman James Fu Bin Lu and investor George Raymond Zage III, who together with affiliated entities already hold more than 60% of Grindr’s outstanding shares.
The proposed purchase price of $18 per share represents a roughly 51% premium over Grindr’s October 10 closing price of $11.96.
Following the announcement, shares traded around $15.55.
The shareholders plan to acquire all remaining Grindr shares through a combination of financing methods, including an equity rollover, a $1 billion first-lien term loan, up to $100 million in new cash equity from the proposing shareholders, and potentially third-party equity investments.
In the filing, the buyers noted that the acquisition is contingent on a minimum per-share price of $15 and that they have no plans to change the company’s leadership team.
A special committee of independent directors has been formed to evaluate the proposal.
The proposing shareholders have requested a response from the company by October 31, aiming to close the transaction in the first quarter of 2026. If completed, Grindr would be delisted from the New York Stock Exchange