Grindr is going public with a $2.1 billion valuation

The LGBTQ+ dating app is going public through a blank check firm. They are merging to form a combined entity with a valuation of $2.1 billion, which will give Grindr access to $384 million in funds to be used for debt payments, as well as to support growth areas and to launch new endeavors.

In an interview with the media organization, Gary Hsueh said that the company had been approached by SPACs in the past. He said that it makes more sense that it chose the SPAC route instead of a traditional IPO.

After the Pandemic made traditional IPOs much riskier than usual, SPACs became hot over the past couple of years. They offer better returns and could make it easier to become a public company. At least one analyst told CNBC that the SPAC bubble is about to burst.

At the moment, Grindr's revenue is mostly from subscription, though it does earn some money from ads. It remains to be seen if a recent report that it sold user data would affect its future earnings.