Facebook is all set to launch a dating app in direct competition with Tinder, the largest market player in the segment. Facebook will soon offer a Tinder-ish Swipe right/swipe left mechanism to browse profiles and say 'Yes/No' as an anonymous response, based on profile photographs and first names. Following this announcement, which happened during the Facebook Annual Developers’ conference today, many Tinder executives took to Twitter and other social channels to mock this "late" entry. Among them, the most notable sarcastic remark came from Joey Levin (CEO, IAC).
😳 quite a statement here from Match Group and IAC re Facebook’s new dating feature. pic.twitter.com/I9aj74bmhG— Deepa Seetharaman (@dseetharaman) May 1, 2018
Joey Levin serves as the CEO of IAC - which in turns owns a majority stake in Match Group, the parent company of Tinder, OkCupid and Match. Joey's remarks were extremely direct about the matter. Responding to the announcement, Joey said:
“Come on in. The water’s warm. Their product could be great for US / Russia relationships.”
Response from Tinder's CEO
Mandy Ginsberg - CEO, Match Group was more reserved about the nature of her response. But that did not sway her from referring to the recent data misuse controversy with Cambridge Analytica.
Ginsberg said, “We’re flattered that Facebook is coming into our space — and sees the global opportunity that we do — as Tinder continues to skyrocket. We’re surprised at the timing given the amount of personal and sensitive data that comes with this territory.”
The Tinder CEO continued to say that “Regardless, we’re going to continue to delight our users through product innovation and relentless focus on relationship success. We understand this category better than anyone. Facebook’s entry will only be invigorating to all of us.”
It remains to be seen whether Tinder and other competitive dating apps utilize Facebook's market entry as a benchmark for the evaluation and inclusion of new features, or if this turns into another story of market monopoly playoffs by the social networking giant.
If you can't guess who's the "giant" in the last statement, you should conduct a poll with your friends and ask them.
Effects on Tinder Stock
Within hours of the announcement of Facebook's intent to launch a dating application, Match’s stock plunged more than 20%. It reached its lowest peak and remained stable at $36.71 while trading hours were open.