Tinder cancels project “dating with Metaverse”

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2022-08-08 02:24:44

Officially, Tinder’s plan to “date with Metaverse” was scrapped due to the loss of Q2 business results and the departure of female CEO – Renate Nyborg

Tinder’s plan to “date with Metaverse” has been scrapped

Recently, Match Group, the parent company behind the popular dating app Tinder, released its Q2 financial report with disappointing numbers. Tinder’s Q2 revenue totaled $795 million, up 12% year-over-year. The decision to buy South Korean media company Hyperconnect for $1.73 billion has cost Tinder owners $10 million. The stock price of Match Group on August 4 was 63.61 USD, down 11.39% in just 5 days.

Match Group's stock price on August 4, 2022
Match Group’s stock price on August 4, 2022

Unexpected business results along with the departure of the first female CEO – Renate Nyborg, Match Group immediately made a move to cut funding for Web3 research.

On August 2, Match Group CEO, Bernard Kim, sent a letter to the company’s shareholders. In the letter, Mr. Kim mentioned downsizing Metaverse investments, and scrapping plans to issue the platform’s digital currency – Tinder Coins.

After acquiring AI and augmented reality company Hyperconnect in 2021, Tinder once hatched the “Tinderverse” project, information revealed by CEO Renate Nyborg. Metaverse is expected to bring an interesting experience, a new playground for Tinder users to meet and interact with each other in a virtual space. However, the reason for the female CEO’s sudden departure from Match Group has not yet been answered.

Mr. Kim said in the letter that Match Group will continue to monitor the Metaverse space, but the right time has not yet come.

Specifically, Mr. Kim said:

I believe the dating experience in the Metaverse space is very important to attract the next generation of users […] However, due to uncertainty, we have decided not to invest heavily in Metaverse at this time.
After receiving mixed reviews from testing Tinder Coin, we’ve decided to take a step back and rethink the initiative so that they contribute more effectively to Tinder’s revenue.

Mr. Kim believes that the Metaverse space is an important dating experience to attract the next generation of Tinder users. Mr. Kim added:

We also plan to explore more about virtual goods to ensure that they will be the real driver of Tinder’s next leg of growth and bring more users to the platform.

Elsewhere, Meta, the parent company of Facebook and Instagram, recently continued to record a loss of up to $2.8 billion from the Metaverse business unit. According to the financial report for the second quarter of 2022 published by Meta on the evening of August 4, Facebook Reality Labs (FRL) continues to be a “black hole” when generating only $ 452 million in revenue, down 35% compared to the same period last year. The division’s annual deficit is typically around $10.2 billion, but the report shows that figure is still on track to surpass that threshold.

In the face of current difficulties, billionaire Mark Zuckerberg is still extremely optimistic and thinks that loss is part of his plan, in stark contrast to the Tinder boss’s reaction.

CEO is confident that:

This is going to be a very expensive undertaking for the next few years. But as the Metaverse became more important in everyday life, I believe we played an important role in building the field.

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