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IAC outlines its plans for a Match Group spin-off

Digital media holding company IAC has taken the next step toward spinning off Match Group, with a proposal outlining what that process would look like.

Match Group (which owns Tinder, PlentOfFish, OkCupid, Hinge and of course Match itself) is already a publicly traded company, but IAC remains the majority owner. With the spin-off, IAC says it should distribute its Match Group shares to IAC stockholders, “resulting in two independent public companies.”

“Today IAC proposed an important first step in the separation of Match Group from IAC,” said IAC CEO Joey Levin in a statement. “IAC is confident that the proposal communicated to the Match Group special committee provides strong footing for Match Group to begin its journey as a thriving, independent company.”

Under the proposal (which IAC says still needs to be approved by its board of directors, as well as the aforementioned special committee, as well as stockholders), Match Group’s dual-class stock structure would  be eliminated, creating a single class of stock.

The company said in August that it was exploring spin-offs of both Match Group and ANGI Homeservices.

In his statement today, Levin said, “As it relates to evaluating our ownership stake in ANGI Homeservices, we don’t currently expect to turn our attention to the question of a spin-off until a Match Group transaction has been completed.”

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Lawyers for former Tinder execs file to dismiss ‘retaliatory’ defamation lawsuit

Last week, former Tinder CEO Greg Blatt filed a defamation lawsuit against Sean Rad and Rosette Pambakian, who are part of a group of Tinder founders and former executives who accused Blatt (pictured above) of sexual harassment and assault as part of a broader suit.

Now Rad and Pambakian’s attorneys have filed their own motion to dismiss the suit, arguing that it “seeks to chill protected speech through costly litigation” — in other words, that it’s the kind of lawsuit prohibited under California’s anti-SLAPP law.

“This lawsuit is intended to muzzle Rosette and Sean from telling the truth about how [IAC chairman] Barry Diller and Greg Blatt stole from their employees and covered up sexual assault allegations,” said Rad and Pambakian’s attorney Orin Snyder in a statement. “Unfortunately, unlawful retaliatory lawsuits like this one designed to silence victims and violate their First Amendment rights are all too common in the #metoo era.”

In the filing, Rad and Pambakian’s attorneys also argued that Blatt filed the suit “solely to launch a public smear campaign against Pambakian and the person who reported the assault to Match, Sean Rad. At the same time, and now that Blatt’s public court filings have served his media objective, Blatt says that the complaint that he himself chose to file in court should actually be sent to private arbitration.”

In response, Blatt’s attorney Vineet Bhatia sent the following statement:

We fully expected this run-of-the-mill, procedural smoke screen to be made by Rad and Pambakian. These arguments are legally wrong and we expect to prevail in Court. The bottom line is, Rad and Pambakian conspired to defame Mr. Blatt and should be held responsible.

Both Blatt’s suit and the new filing seek to connect the case to the broader #metoo movement (which, as Snyder alluded to, has seen a number of high-profile figures accused of sexual assault, and who then fought back through defamation lawsuits).

Blatt’s lawyers argued that “Rad and Pambakian have attempted to weaponize an important social movement, undermining the plight of true victims of sexual abuse by making false accusations in cynical pursuit of a $2 billion windfall.”

In contrast, Rad and Pambakian’s attorneys said the “ensuing crescendo of retaliation — reminiscent of many Hollywood #MeToo cases — included [Tinder’s parent company] Match circling the wagons around Blatt, publicly belittling Pambakian by chalking up the assault to ‘consensual cuddling,’ and firing her months later after she refused to sign an NDA.”

In a lawsuit filed in the summer of 2018, Rad (Tinder’s co-founder and former CEO), Pambakian (who was then the company’s vice president of marketing and communications), Rad’s fellow co-founders Justin Mateen and Jonathan Badeen and others sued Match and its controlling shareholder IAC, accusing them of manipulating financial data and removing Rad as CEO in order to create a “fake lowball valuation” and strip the founders and executives of their stock options.

The suit also accused Blatt — who served as an executive at IAC and as CEO of Match before replacing Rad as CEO of Tinder — of sexually harassing Pambakian at a company holiday party in 2016.

IAC and Match have called this suit meritless. And in Blatt’s defamation lawsuit, his attorneys said the encounter between Blatt and Pambakian at the holiday party was consensual and that Rad and Pambakian subsequently “conspired to make false allegations of sexual harassment and sexual assault against Blatt with the specific intent to damage Blatt’s good name, personal and professional reputation, and credibility.”

In a footnote, Rad and Pambakian’s attorneys say that because they’re making a free speech argument, their motion to dismiss Blatt’s suit does not require the court to “delve into the facts.” However, they add:

Blatt’s false narrative — that this was consensual, and that Pambakian and Rad concocted the assault allegations to aid their valuation lawsuit — is patently false and offensive. The evidence shows that Blatt admitted being drunk at the holiday party, making inappropriate comments to Pambakian, and “snuggling and nuzzling” her in a hotel bed. It further shows that Blatt apologized to Pambakian the following week, and later offered to resign over his misconduct. These are not the actions of an innocent man, nor is it the first time Blatt has been accused of mistreating women in the workplace.

To back that up, the motion points to a Gawker article describing supposed harassment and verbal abuse by an unnamed “CEO of a major dating site” owned by a corporation “in a glass building on the far side of town” (subsequent coverage has suggested that the piece was about Blatt).

Pambakian withdrew from the initial suit due to an arbitration agreement, but is now suing Blatt and Match for wrongful termination and sexual assault.

You can read the full motion below.

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Startup ads are taking over the subway

If you’re a New Yorker, one of the easiest ways to keep up-to-date on the latest consumer products — furniture, beauty products, mobile apps, you name it — is to hop on the subway.

Even before you board, you may find yourself walking through a station filled with colorful startup ads. And once you’re actually on the train, you may find yourself surrounded by even more of those of ads.

It felt very different when I first moved to New York in 2013, back when the only companies that seemed to buy subway ads were local colleges, law firms and sketchy-sounding surgeons. Over the next few years, I noticed that the companies I wrote about in TechCrunch were starting to show up on the subway walls.

These ads are managed by Outfront Media, which has an exclusive contract with the MTA and says it’s worked with more than 150 startups and direct-to-consumer brands since 2018.

“Startups and DTC brands, now more than ever before, are looking for ways to raise awareness and gain market share among a heavy competitor set,” said Outfront’s chief product experience officer Jason Kuperman via email. “For these brands, it is all about testing and learning, and leveraging out-of-home (OOH) [advertising] and advertising on the subway allows them to do just that.”

Kuperman added that when they launch their subway campaigns, many of these startups are unknown, so they “find value in a permanent place to advertise that people pass through every day.”

From out-of-home to in transit

John Laramie, CEO of out-of-home advertising agency Project X, agreed that there’s been a big shift over the past few years.

He and I first spoke in 2011 about startups buying billboard ads alongside Silicon Valley’s main highway, Route 101. More recently, he told me, “Fast forward to the last four years, and who cares about the 101? It’s all about the New York City subway.”

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Daily Burn plans a new line of fitness apps, starting with HIIT Workouts

Daily Burn, the online fitness brand owned by IAC, launched a new iPhone app today devoted to the popular workout style known as HIIT (high-intensity interval training).

Daily Burn already offers a general training app, but the company says it’s planning a whole series of vertical workout apps, starting with HIIT Workouts. They are “bringing personalized workout training to every member tailored to their interests.”

If you’re wondering exactly what HIIT is, the individual exercises may be familiar, but as a Daily Burn article puts it, it’s all combined into “quick, intense bursts of exercise, followed by short, sometimes active, recovery periods.”

There’s no shortage of HIIT workout apps, or HIIT workouts in broader fitness apps (for example, I’ve tried out several through my Fitbit Coach subscription). But Daily Burn points to the combination of guided video workouts (so you’re less likely to mess things up) with a specific focus on HIIT. Plus, the workouts are tailored to your goals and endurance levels.

“We spent months researching how people interact with their phones, and combined it with Daily Burn’s world-class fitness and streaming expertise to create a best in class HIIT app that is effective and fun,” said Daily Burn CEO Tricia Han in the announcement. “With personalized workouts led by expert trainers and optimized for mobile, members have access to top instructors, progress reports and a supportive community in the palm of their hand.”

HIIT Workouts by Daily Burn offers a free seven-day trial; it then costs $9.99 per month.

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Tinder founders sue parent companies Match and IAC for at least $2B

A group of Tinder founders and executives has filed a lawsuit against parent company Match Group and its controlling shareholder IAC.

The plaintiffs in the suit include Tinder co-founders Sean Rad, Justin Mateen and Jonathan Badeen — Badeen still works at Tinder, as do plaintiffs James Kim (the company’s vice president of finance) and Rosette Pambakian (its vice president of marketing and communications).

We’ve reached out to IAC for comment, as well as Pambakian, who’s served as our main contact at Tinder. We’ll update the post if we hear back.

The suit alleges that IAC and Match Group manipulated financial data in order to create “a fake lowball valuation” (to quote the plaintiffs’ press release), then stripped Rad, Mateen, Badeen and others of their stock options. It points to the removal of Rad as CEO, as well as other management changes, as moves designed “to allow Defendants to control the valuation of Tinder and deprive Tinder optionholders of their right to participate in the company’s future success.”

The lawsuit also alleges that Greg Blatt, the Match CEO who became CEO of Tinder, groped and sexually harassed Pambakian at the company’s 2016 holiday party, supposedly leading the company to “whitewash” his actions long enough for him to complete the valuation of Tinder and its merger with Match Group, and then to announce his departure.

In response, the plaintiffs are asking for “compensatory damages in an amount to be determined at trial, but not less than $2,000,000,000.”

“We were always concerned about IAC’s reputation for ignoring their contractual commitments and acting like the rules don’t apply to them,” Rad said in the release. “But we never imagined the lengths they would go to cheat all the people who built Tinder. The Tinder team — especially the plaintiffs who are currently senior leaders at the company — have shown tremendous strength in exposing IAC/Match’s systematic violation of employees’ rights.”

Update: We’ve just received the following joint statement from IAC and Match Group.

The allegations in the complaint are meritless, and IAC and Match Group intend to vigorously defend against them.

Since Tinder’s inception, Match Group has paid out in excess of a billion dollars in equity compensation to Tinder’s founders and employees. With respect to the matters alleged in the complaint, the facts are simple: Match Group and the plaintiffs went through a rigorous, contractually – defined valuation process involving two independent global investment banks, and Mr. Rad and his merry band of plaintiffs did not like the outcome. Mr. Rad (who was dismissed from the Company a year ago) and Mr. Mateen (who has not been with the Company in years) may not like the fact that Tinder has experienced enormous success following their respective departures, but sour grapes alone do not a lawsuit make. Mr. Rad has a rich history of outlandish public statements, and this lawsuit contains just another series of them. We look forward to defending our position in court.

As-filed complaint.pdf by TechCrunch on Scribd

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The Daily Beast brings Cheat Sheet news summaries to its mobile app and Alexa

Daily Beast Cheat Sheet The Daily Beast launched a new version of its iOS app today, incorporating one of the IAC-owned news site’s main features — the Cheat Sheet, which provides brief (150 to 200 word) summaries of the day’s top stories. The Cheat Sheet gets prominent placement in the app. In fact, it’s now one of two main sections, along with Top Stories. And that’s not the only… Read More

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Sean Rad steps away from CEO role (again) to run Tinder’s new Swipe Ventures

sean-rad2 Today, Tinder is launching a new M&A branch of the company called Swipe Ventures, which will be led by Sean Rad. As part of the launch, Rad will step down as Tinder CEO and become chairman of both Tinder and Swipe Ventures, with Match CEO and Chairman Greg Blatt swapping out as Tinder chairman to become Tinder CEO. He will remain chairman and CEO of Tinder parent company Match. Read More

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IAC-Owned Ask.fm Acquires Recipe Network Foodily

fruit vegetables heart IAC-owned social network Ask.fm has acquired the entire team behind recipe network Foodily, the companies are announcing today, which includes those focused on product, engineering and design. These nine team members will now be tasked with the continued development of Ask.fm’s Q&A platform, while the Foodily website and mobile app will be maintained by a separate division within IAC. Read More

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Tinder Sees Huge Jump In App Revenue Rankings, Courtesy Of Tinder Plus

tinder2014-10 Dating app Tinder’s move into the subscription business seems to be paying off. According to remarks made by parent company IAC during its quarterly earnings reported this week, the company is pleased with Tinder’s penetration rates – it reached its current level of penetration quicker than IAC’s OkCupid did, in fact – and renewal rates are higher than any… Read More

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