Disappointed with revenues last quarter, Match Group announced that it is shrinking Tinder’s metaverse dating plans and shelving plans to offer Tinder Coins, an in-app currency. Bernard Kim, the current CEO of parent company Match Group, announced last September that Renate Nyborg, the first female CEO of the dating app, is also stepping down. Kim himself was named CEO just two months ago.
Nyborg has previously announced ambitious plans for Tinder’s entry into the metaverse. Last year, Tinder acquired a company called Hyperconnect, which focuses on video, artificial intelligence, and augmented reality technology, and Nyborg later introduced the avatar-based “Single Town” experience as a way for Tinder users to one day meet and interact.
But the current CEO says he instructed Hyperconnect to scale down. “Given the metaverse endlines and uncertainty about what will and won’t work and the more demanding work environment, I’ve instructed the Hyperconnect team to iterate but not invest too much in the metaverse at this time,” says Kim. Kim continues: “We will continue to carefully consider this area and consider moving forward at the appropriate time when we have greater clarity on the overall opportunity and feel we have a well-positioned service to succeed.”
Match Group said that the acquisition of Hyperconnect contributed to the transition from operating income of $210 million in the same quarter last year to an operating loss of $10 million in the second quarter of 2022. Tinder Coins, which was intended to be given to active users on Tinder with the thought that it would encourage spending on the service, was also shelved. However, CEO Kim states that they will reconsider this idea later.
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