Anson Funds nominated Board candidates to Match Group (MTCH)

Market Cap: $7.8 billion| Match Group, Inc. engages in the provision of dating products. 

Anson Funds

On March 11, 2025, Anson Funds (0.6%) announced plans to nominate directors to Match Group Inc.'s board, pushing for changes in capital allocation, cost-cutting, and a review of the MG Asia business. Anson raised concerns over governance issues, including high executive turnover, and expressed dissatisfaction with the slow pace of reforms despite recent changes, such as an investor day and capital return commitments.

On April 3, 2025, Anson Funds nominated Fumbi Chima, Laura Lee, and Kelley Morrell for election to the Board at the 2025 Annual Meeting, highlighting the urgent need for change due to the company's long-term underperformance. In a letter to stockholders, Anson Funds criticized Match’s outdated and insular Board, which is poorly equipped to oversee a modern tech company, citing its continued underperformance despite four CEO changes in five years.

Starboard Value

On July 15, 2024, Starboard Value (6.6%) delivered a letter to the company expressing concerns about its underperformance and undervaluation. They suggested the Board explore all value creation options, including potential privatization. Starboard highlighted Match's declining share price and underperformance since its separation from IAC, noting it traded at a significant discount compared to peers. They emphasized the need for operational improvements, particularly at Tinder, and suggested a more aggressive share repurchase program to enhance shareholder value.

Valuation insight

Starboard stated, "Match is currently trading at less than 8.5x 2024 free cash flow, a level we believe dramatically undervalues the Company. At or around the current valuation, we believe Match should be using 75% or more of its free cash flow, plus some or all of the approximately $900 million of available capacity under its 3.0x net leverage target, to repurchase shares. These buybacks would enable Match to shrink its share count, and, if coupled with the operational improvement opportunities outlined above, these buybacks can significantly accelerate free cash flow per share growth. We believe there is no better use of cash for Match than repurchasing its own shares at this level. We believe Match can generate $5.50 or more of free cash flow per share in 2026."