One year later, Rad became chairman of Tinder and Greg Blatt became Tinder’s CEO while simultaneously serving as CEO and chairman of Match Group. By 2017, Tinder had merged under the Match Group umbrella.
In 2018, Rad and nine other Tinder employees sued IAC, claiming IAC purposely undervalued the startup. The lawsuit sought $2 billion in damages.
The group, which included Badeen and Mateen, filed suit against both IAC and Match Group alleging that a lowball valuation was used to reduce the value of early employees’ and founders’ stock options.
When IAC merged Tinder with Match Group in 2017, the suit argued, Tinder employees’ options in the rapidly growing app were “stripped away,” leaving them with options in Match instead, which was less valuable. [Read more…]