Grindr Inc (NYSE:GRND) shares fell more than 10% on Monday after the LGBTQ+ social networking platform said a proposal to take it private at a valuation of roughly $3.46 billion would not move forward, citing uncertainty around financing.
The proposed buyout, led by major shareholders Ray Zage and James Lu, offered $18 per share in cash and represented a significant premium to Grindr’s trading price when the offer was submitted on October 24.
The two shareholders collectively control more than 60% of the company’s outstanding common stock.
A special committee of independent directors had been evaluating the unsolicited, non-binding proposal with the assistance of external financial and legal advisors. In a statement, the committee said it was unable to obtain “satisfactory information about definitive financing” behind the bid, despite repeated requests for clarity.
The committee "remains confident in the company’s ability to create significant value for all shareholders as the management team executes its long-term strategic plan, as demonstrated by the company’s outstanding performance in its most recent third quarter financial results," according to Grindr.
Grindr shares traded at about $12 on Monday afternoon, down more than 30% in the year to date.