The West Hollywood-based queer dating app Grindr could soon go private after the chair of the board submitted a buyout bid and stepped down from his position.
James Lu, who served on Grindr’s board for more than five years, said last week he was resigning to focus on personal business pursuits. In October, Lu and fellow board member Ray Zage made an offer to take Grindr private in a nearly $3.5-billion deal.
Lu and Zage collectively own 60% of Grindr’s outstanding shares and offered to buy the rest for $18 each in cash. Shares were valued at around $15 each in midday trading Monday.
“My decision to resign from the Board is not a reflection of my views on Grindr,” Lu wrote in a letter to board members announcing his resignation. “I remain optimistic about Grindr’s long-term prospects, as demonstrated by the proposal and my desire to take the company private to refocus and execute on opportunities to grow the business.”
Lu and Zage said they were interested in closing the deal in the first few months of 2026. The pair led the company’s initial public offering in November 2022.
The board formed a special committee in October to respond to the unsolicited take-private proposal. The Manhattan Beach-based sneaker company Skechers and the Los Angeles-based fashion brand Guess were also taken private this year.
“There is no assurance that this proposal will result in a transaction or any other strategic outcome,” Grindr said in an Oct. 24 release.
Grindr posted its latest earnings last week, reporting a total revenue of $116 million for the third quarter, a 30% year-over-year increase. The company’s quarterly net income was $31 million.
Grindr executives said 2025 has been the most successful year in the company’s history in terms of profitability and engagement growth. Other mainstream dating apps, including Tinder and its parent company Match Group, have been struggling to retain users.
Meanwhile in Los Angeles, a batch of dating app startups have crowded the market and hope to win over users with creative approaches to online connection.
Grindr’s shares have fallen more than 15% this year.
In his letter to board members, Lu said his buyout offer valued shares “at a significant premium for shareholders.”
