Bumble's Change in Ownership Might Spell Trouble for Match Group

Match Group (NASDAQ: MTCH) has had a remarkable year, and its success has been reflected in its soaring stock price, which is up about 60% thus far in 2019, vastly outperforming the broader market. The company's remarkable growth has been driven by the massive success of its online dating app Tinder, which has added more than 1.3 million new members so far this year, growing to 5.67 million, up 30% compared to its year-end levels in 2018.

Now one of Tinder's biggest rivals, Bumble, has a powerful new backer. Investment firm Blackstone Group (NYSE: BX) announced last week that it had purchased a majority stake in Bumble parent MagicLab in a deal that valued the company at $3 billion. Bumble founder and CEO Whitney Wolfe Herd -- who also helped co-found Tinder -- will head the company.

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Source Fool.com