Tags: facebook | dating | rival | shares | match | iac

Dating Sites Match, IAC Fall After Facebook Enters Matchmaking

Dating Sites Match, IAC Fall After Facebook Enters Matchmaking
(Djtaylor/Dreamstime)

Tuesday, 01 May 2018 03:00 PM

Facebook Inc.'s announcement on Tuesday that it would add dating features to the world's largest social network sent shares of rival dating sites tumbling, as investors expressed concern about the entry of the much larger player.

Facebook Chief Executive Mark Zuckerberg announced the latest addition at the company's developer conference, one of a host of new features the tech company is adding in order to get users to spend more time on the site.

Shares of Match Group Inc., the owner of popular dating app Tinder, fell as much as 21 percent after the news, while IAC, Match's parent company, dropped nearly 14 percent.

Sparks Networks, owner of JDate and ChristianMingle, also fell 7 percent.

"Clearly there's significant potential for Facebook to be a big problem for Match," said Atlantic Equities analyst James Cordwell.

"But the initial functionality looks relatively basic compared to those offered by Match's services, so the impact Facebook has on the dating space will be down to how well it executes in this area," Cordwell added.

The difficulty of creating a popular dating site was also cited by Daniel Kurnos, an analyst at the Benchmark Company, who cautioned it was not an overnight project and one that requires much more than sheer machine learning.

"I think the reaction is a combination of the Facebook news along with concerns that Match was getting toppy," or expensive, Kurnos told Reuters. "I can't see Facebook supplanting Match any time soon – too big a moat."

Facebook connects friends and acquaintances but until now, has not delved into the domain of match-making, where a host of competitors offer services, from privately held eHarmony to IAC-owned OkCupid and PlentyOfFish.

© 2019 Thomson/Reuters. All rights reserved.

   
1Like our page
2Share
StreetTalk
Facebook Inc.'s announcement on Tuesday that it would add dating features to the world's largest social network sent shares of rival dating sites tumbling, as investors expressed concern about the entry of the much larger player.Facebook Chief Executive Mark Zuckerberg...
facebook, dating, rival, shares, match, iac
278
2018-00-01
Tuesday, 01 May 2018 03:00 PM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved