Actually, Tinder Is Not Worth $5 Billion

For a brief moment following a Bloomberg report, the Internet thought hot dating app Tinder was worth $5 billion.

That's off by a lot, an IAC executive tells Forbes and sources tell Business Insider.

OKCupid co-founder Sam Yagan, who works for IAC, tells Forbes' Jeff Bercovici: "I can confirm on the record that we did a transaction with Chamath, but this valuation is nowhere near the truth."

Two LA startup executives tell Business Insider that IAC purchased 10% of Tinder from former Facebooker and investor Chamath Palihapitiya for $50 million at an estimated $500 million valuation. Bloomberg initially reported the sale price at $500 million for a $5 billion Tinder valuation.

IAC already owned a majority stake in the app it helped incubate before the deal.