IAC's Wild, Tinder-Fueled Ride

Today was an interesting day for IAC.

Bloomberg reported it paid $500 million to buy 10% of Tinder from an investor, the dating app it owns a controlling interest in. At that price, the implied valuation of Tinder would be $5 billion.

IAC is only worth ~$6 billion, so this was some pretty stunning news!

Investors quickly started buying IAC stock, thinking there was an unknown $5 billion gem buried in its depths. The stock went from being down for the day to popping nearly 5%.

But alas, reality set it. IAC told Forbes it bought a stake in Tinder, but Bloomberg's "valuation is nowhere near the truth."

We've heard from industry sources that don't work at Tinder that the valuation is closer to $500 million.