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Grindrs owners may take it private after a financial squeeze

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Published: Monday, October 13, 2025 at 9:24 pm

Grindr Owners Eye Going Private Amid Financial Troubles

The owners of the popular LGBTQ+ dating app Grindr are reportedly exploring a move to take the company private following a financial downturn. According to a recent report, the majority owners, Raymond Zage and James Lu, are facing a crisis stemming from a decline in Grindr's stock price.

Zage, a former hedge fund manager, and Lu, a Chinese-American entrepreneur, acquired Grindr in 2020 for over $600 million and subsequently took the app public in 2022 through a blank-check merger. The two control over 60% of the company.

The report indicates that Zage and Lu used a significant portion of their Grindr shares as collateral for personal loans from a unit of Singapore's sovereign wealth fund, Temasek. However, as Grindr's stock price began to fall at the end of September, these loans became undercollateralized. Consequently, the Temasek unit seized and sold some of the shares last week.

Despite the stock slide, Grindr's financial performance appears relatively stable. The company reported a 25% increase in profits during the second quarter. However, there have been some concerns from investors regarding narrowing margins, and some executive turnover.

To address the situation, Zage and Lu are reportedly in discussions with Fortress Investment Group to secure financing for a buyout. The proposed deal would value Grindr at approximately $3 billion, with a price of around $15 per share. Following the report, Grindr's shares saw an increase in value.

BNN's Perspective: The situation highlights the inherent risks associated with leveraging personal assets in the volatile stock market. While Grindr's underlying business appears to be performing well, the financial pressures faced by its owners underscore the importance of prudent financial management and the potential impact of market fluctuations on even successful companies.

Keywords: Grindr, dating app, Raymond Zage, James Lu, stock decline, going private, financial crisis, Temasek, Fortress Investment Group, buyout, LGBTQ+, shares, profits, investors

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