IAC wants it all in the US $2.1 billion online dating business and buys How about We
What: Internet holding company IAC/InterActiveCorp has acquired the dating startup and media assets of HowAboutWe, an online romance site.
Why it matters: This reflects IAC/InterActiveCorp ' intention to lead the digital dating market, although it already controls 28% of the business. The online dating business amounts to approximately US$ 2,1 billion in the U.S. It is is a mostly subscription based business but also offers interesting online targeting as event opportunities to advertisers.
IAC/InterActiveCorp, the internet holding company controlled by billionaire Barry Diller, has acquired the dating startup and media assets of This Life Inc.'s HowAboutWe.
HowAboutWe was founded in 2010 by Aaron Schildkrout and Brian Schechter. The site is the host of other online romance sites. It offers HowAboutWe Dating, a matchmaking for singles and HowAboutWe Couples, a date-suggestion service. Free to use, the site also offers a US $8 a month subscription service.
Along with HowAboutWe’s dating business, the startup’s media network will join IAC. However, HowAboutWe for Couples will remain independent, according to IAC's Match Group CEO Sam Yagan. Therefore, only a small number of HowAboutWe employees will move to IAC. Others will remain with HowAboutWe Couples business.
IAC already has a large dating site portfolio. The company owns 150 media brands and products, including dating sites Match.com, OKCupid and mobile app Tinder.
The move reflects IAC’s intention to lead the digital dating market, although it is already the market-share leader with about 28%, according to researcher IBISWorld.
In December, Diller's company said it planned to turn Match Group into a separate business, setting the stage for a potential spinoff. The division, which also includes fitness app DailyBurn and education tool Tutor.com, last year generated sales of US $788 million, about a quarter of IAC's revenue.