This post originally appeared in Business Insider.
Tinder, the mobile dating app that’s exploded to 10 million users and millions of matches made in just over a year, is now valued at $5 billion according to Bloomberg’s Serena Saitto.
InterActiveCorp, or IAC, which owns a majority stake in the company it helped incubate, recently purchased 10 percent more of Tinder from early Facebook employee and investor Chamath Palihapitiya for $500 million, according to Saitto.
However, IAC says the Bloomberg report is inaccuate. Sam Yagan, CEO of IAC’s Match Group, says, “I can confirm on the record that we did a transaction with Chamath, but this valuation is nowhere near the truth.”
The Match Group is responsible for dating apps at IAC, including Tinder. IAC also owns popular dating services Match and OkCupid.
No idea what Tinder is? We wrote one of the first articles about it in January 2013 when it was flooding college campuses. Here’s a walk-through.
Here’s the bit from Bloomberg Terminal:
IAC recently bought another 10 percent of Tinder from venture capitalist Chamath Palihapitiya for $500 million, according to people with knowledge of the deal. That values the 20-month-old company with 10 million daily users at $5 billion, compared with IAC’s $5.57 billion market capitalization.
See also: IAC Shares Explode Higher After News Its Adding to Its Stake in Tinder
Update, April 11, 2014: This post has been updated and edited to reflect IAC’s comments about Tinder and its valuation.
