Grindr Stock Dips as Take-Private Talks End
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 05 2025
0mins
Should l Buy GRND?
Source: SeekingAlpha
Shares of GRND.N declined sharply today, falling 10% following the company's announcement to terminate discussions regarding a $3.46 billion take-private proposal. The stock crossed below its 5-day simple moving average, indicating increased bearish momentum as investor sentiment soured. The special committee, led by Chair Chad Cohen, cited unresolved financing uncertainties as the primary reason for ceasing negotiations with major shareholders Ray Zage and James Lu, who control over 60% of Grindr's shares. This decision has raised concerns about Grindr's competitive position in the LGBTQIA+ dating market, prompting the need for the company to reassess its strategic direction amidst ongoing market challenges.
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Analyst Views on GRND
Wall Street analysts forecast GRND stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GRND is 22.00 USD with a low forecast of 20.00 USD and a high forecast of 26.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
4 Buy
0 Hold
0 Sell
Strong Buy
Current: 9.920
Low
20.00
Averages
22.00
High
26.00
Current: 9.920
Low
20.00
Averages
22.00
High
26.00
About GRND
Grindr Inc. manages and operates the Grindr platform, which a global social networking platform primarily serving and addressing the needs of gay, bisexual, and sexually explorative adults. The Company is developing new products for users to engage with the Grindr platform, which include new partnership-based digital versions of services typically found in physical gayborhoods. Its platform enables GBTQ adults to connect with one another. Its platform helps its users find what they are looking for: casual dating, long-term relationships, community and friendships, professional networking, travel information and local discovery. The Grindr platform offers a variety of location-based social features and functions, including identity expression (profile, photos, presence); connection (search, filters, the Cascade, Viewed Me); and interaction (chat, media sharing); with trust and safety tools across the experience, and subscriptions for premium features offering further access and control.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

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- Board Investigation: Johnson Fistel is investigating whether Grindr Inc.'s Board of Directors breached fiduciary duties by terminating negotiations with the controlling stockholder, particularly concerning minority shareholders' rights.
- Shareholder Rights Review: The investigation will assess if the Board's decisions impacted shareholder rights, including the balance of control within the company and the treatment of non-controlling investors, potentially leading to decreased shareholder trust.
- Potential Legal Consequences: Should the investigation reveal board misconduct, it could prompt shareholder lawsuits, affecting Grindr's stock price and market reputation while increasing the company's legal risks.
- Investor Participation: Johnson Fistel encourages Grindr shareholders to join the investigation, highlighting concerns over corporate governance transparency, which may influence future investor confidence.
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- Brand Transformation Leadership: Tristan Pineiro appointed as Chief Marketing Officer has successfully repositioned Grindr's brand through the Global Gayborhood platform, enhancing cultural relevance and expanding advertiser engagement, thereby driving brand recognition in global markets.
- Legal Function Expansion: Zac Katz appointed as Chief Legal Officer will oversee legal, privacy, and government affairs, supporting Grindr's responsibilities as a public company while driving growth in the Grindr for Equality social impact initiative, enhancing the company's influence in social responsibility.
- Strategic Growth Engine: Under Pineiro's leadership, marketing and communications have become a strategic growth lever for Grindr, building a global content and experiences engine that translates product innovation into user trust and engagement, significantly boosting user participation.
- Strengthened Leadership Team: CEO George Arison emphasized the critical roles these leaders play in advancing Grindr's ambitious vision, indicating that the company's influence and responsibility within the global LGBTQ+ community are continuously growing.
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- Share Acquisition: Director George Raymond Zage III acquired a total of 155,000 shares through multiple open-market purchases on December 3 and 4, 2025, with an aggregate value of approximately $2.1 million, raising his direct holdings to 8,063,283 shares, reflecting confidence in the company's future prospects.
- Holding Proportion Analysis: Post-transaction, Zage's direct holding ratio stands at 92.2%, indicating substantial capacity for future trades, consistent with a net-buy trend over the past year, which may further bolster market confidence in Grindr.
- Market Performance Comparison: The average purchase price for this acquisition was $13.49 per share, while Grindr's stock price as of December 4, 2025, had declined by 11.5% over the past year, showcasing Zage's strategy of buying during market downturns, potentially setting the stage for future rebounds.
- Investor Impact: Zage and his partner James Lu owned 64% of the company, and despite withdrawing a $3.5 billion bid to take Grindr private, their decision to increase shareholdings signals confidence in the company's public market presence, likely attracting more investor interest.
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- Share Acquisition: On December 3 and 4, 2025, Zage acquired 155,000 shares of Grindr through multiple open-market purchases valued at approximately $2.1 million, raising his direct ownership to 8,063,283 shares, demonstrating confidence in the company's future prospects.
- Ownership Percentage Change: This transaction impacted Zage's total holdings, increasing his stake to 8.06%, indicating his ongoing commitment to Grindr despite previously withdrawing a bid to take the company private.
- Strong Financial Performance: Grindr's latest earnings report released on November 7 revealed that 2025 was the best financial year in the company's history, leading to an 11% stock price increase, which provided a positive market backdrop for Zage's acquisition decision.
- Investor Confidence: With a net worth exceeding $1 billion primarily from his investment in Grindr, Zage's advocacy for increased share buybacks or dividends could enhance overall shareholder returns, although smaller retail investors may not directly benefit from mirroring his investment moves.
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- Investigation Launched: Johnson Fistel, PLLP is investigating whether Grindr's Board breached fiduciary duties by terminating negotiations with its controlling stockholder, which may impact the balance of control and minority shareholder rights.
- Shareholder Rights Concern: The investigation will assess if the Board's decisions have harmed non-controlling investors' rights, potentially leading to decreased trust in corporate governance and affecting shareholder investment decisions.
- Law Firm Background: Johnson Fistel is a nationally recognized shareholder rights law firm, ranked among the Top 10 Plaintiff Law Firms in 2024, reflecting its effectiveness in advocating for investors.
- Historical Performance: The firm has recovered approximately $90.725 million for clients in securities class actions, showcasing its successful track record, which may encourage more affected shareholders to participate in the investigation.
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