Match Group Inc (NASDAQ: MTCH) has appointed Faye Iosotaluno as the new CEO of Tinder, its flagship dating app.
The appointment of Iosotaluno follows reports of activist Elliott Investment Management acquiring a $1 billion stake in Match Group, potentially signaling upcoming strategic changes.
This decision concludes a nearly two-year period during which Match Group's CEO, Bernard Kim, also served as the interim CEO of Tinder. Iosotaluno's promotion from her role as COO in August 2022 represents a strategic step in a broader turnaround plan initiated by Kim, Bloomberg reports.
However, despite these leadership changes, Match Group has not yet achieved the growth rebound analysts anticipate.
Match Group, which owns various dating apps, including Hinge, OKCupid, and The League, has faced challenges maintaining its paid subscriber base.
The company has seen a decline in paying users across the past four quarters, with Tinder experiencing a drop in the last two quarters. Analysts predict that this trend might continue before a return to growth is seen by year-end.
Over the past decade, dating apps have transformed the romantic scene into a major industry, with users globally spending upwards of $5 billion on these platforms in 2023.
Match Group responded to these market pressures by raising subscription fees and introducing premium service tiers.
Under Bernard Kim's leadership, the company has introduced new strategies and pricing plans to revive growth and attract new subscribers, especially from Gen Z.
Iosotaluno, in her previous role as COO, has been a proponent of changes to Tinder's community guidelines to enhance the user experience.
Match stock lost over 13% last year versus rival Bumble Inc (NASDAQ: BMBL), which lost over 33%.
Price Action: MTCH shares traded higher by 0.64% at $39.29 premarket on the last check Wednesday.