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Tinder founders sue IAC for billions claiming company 'robbed' them of stock options

USATODAY - Tech Top Stories

Swipe right and DM's are common terms of dating in the digital age and a new comedy series explores what it's like to be suddenly single in this App era. "Sideswiped," created by and starring Carly Craig, is now available on YouTube Premium. A group of founders, current executives and early employees of Tinder sued the dating app's owner IAC and its subsidiary Match Group for at least $2 billion, claiming the defendants "robbed Tinder employees" by cooking financial information, "undermining Tinder's valuation and unlawfully stripping away their Tinder stock options." Plaintiffs in the case filed in New York State Supreme Court in Manhattan include Tinder's founders Sean Rad, Justin Mateen and Jonathan Badeen, as well as three currrent senior executives. IAC had no immediate comment on the lawsuit.


Tinder Owner To Pay Founders $441 Mn To Settle Valuation Lawsuit

International Business Times

The company that owns Tinder will pay $441 million to the popular dating app's founders to settle a dispute over the valuation of stock options, documents showed Wednesday. The suit filed in New York in 2018 contended that Tinder owner Match Group, and its then parent firm InterActiveCorp, schemed to dramatically drive down the value of stock options and then eliminate them altogether. Co-creators Sean Rad, Justin Mateen and Jonathan Badeen alleged Match and IAC relied on bogus figures to arrive at a valuation of $3 billion in 2017 -- when Tinder was actually worth more than four times that. Tinder's owner is paying the app's founders millions to settle a lawsuit Photo: AFP / Aamir QURESHI Created in 2012, Tinder now has more than 10 million paying users who can quickly scroll through possible romantic matches, and then swipe left or right to signal interest. With options on about 20 percent of Tinder's stock, the founders and their early employees felt they had been shortchanged by several billion dollars.


Snap's IPO could make some employees millionaires while others are left out

Los Angeles Times

Five years ago when Facebook went public, employees of the social network were glued to office televisions airing CNBC, waiting for the company's trading price. "Everyone was hoping for a pop," said Dan Fletcher, a former Facebook employee, referring to the spike in stock price that some companies experience after an initial public offering. Facebook debuted at $38 a share. When the first trade of the day came back at $42.05 -- a gain of nearly 10% -- everyone erupted in cheers. "You could see everyone's eyes sit back in their heads as they did the mental math," said Fletcher.


When tech companies go public, employees can strike it rich -- or not. And then the trouble starts

Los Angeles Times

Five years ago when Facebook went public, employees of the social network were glued to office televisions airing CNBC, waiting for the company's trading price. "Everyone was hoping for a pop," said Dan Fletcher, a former Facebook employee, referring to the spike in stock price that some companies experience after an initial public offering. Facebook debuted at $38 a share. When the first trade of the day came back at $42.05 -- a gain of nearly 10% -- everyone erupted in cheers. "You could see everyone's eyes sit back in their heads as they did the mental math," said Fletcher.


Former WeWork Chief's Gargantuan Exit Package Gets New Sweetener

WSJ.com: WSJD - Technology

The deal was part of a renegotiation of the former chief executive's giant 2019 exit package meant to end a long-running dispute between him and SoftBank and help clear the way for a public listing for WeWork, according to people familiar with the matter. In addition, the final package gave him nearly $200 million in cash, let him refinance $432 million in debt on favorable terms and allowed an entity Mr. Neumann controls to sell $578 million in WeWork stock. The stock sale was open to all investors while the other benefits were reserved for Mr. Neumann. The filings also show how, after Mr. Neumann's exit in the fall of 2019, WeWork took big losses as it sold off a number of companies acquired at his direction. It garnered just $164 million on 10 investments that were initially purchased for $759 million in cash and WeWork stock.