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Monotoca t1_iwy2f6s wrote

Reply to comment by MinimumBattle1516 in Don't buy into the Grindr merger - you're just asking to get fucked by fickdichdock

I've already sold a big portion off today, it's price is unsustainable. I'll consider buying in later after it dumps. But to address your points:

  1. LA has a metro population of 18m. The US has a 3.8% LGBT according to NPR, but I'll be generous and say LA has 6%, half of which are men. Pew research says 55% of gay men have used a dating app before. So now, we're at 18000000* 0.03* 0.55=297000.

So that means Grindr's active base is 16.8% of the total population. 1 in 6. That's a healthy size that still has potential for growth.

  1. Social media and dating apps don't have much competition. Unlike other businesses, quantity > quality. If all the people are on Grindr, you either put up with Grindr's service or go to a better app with no one on it. I doubt anyone can dethrone them as the gay app except Match Group/Bumble.

  2. Why is Grindr Extra a bust from the business perspective? Users may be unhappy, but that's not the core consideration - revenue is. Tinder users are profoundly unhappy too.

  3. Ads have never been a primary revenue source for any dating app. I still see much potential for Grindr, it's one of the only avenues to target messages specifically to LGBT crowds, unlike Tinder, which has a general base. Healthcare ads (e.g. Monkeypox services), queer events, etc. are perfect advertisers.

  4. Goldman Sachs is behind most listings anyway.

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