Popular dating sites Match.com and OkCupid have decided to make it official. Match.com, part of the IAC family, has acquired OkCupid for $50 million in cash plus future payments dependent on performance.
According to IAC, OkCupid has “been the fastest growing dating site in the advertising-based category.” It’s a free site which attracts a younger user base than you would find on a Match.com.
“We know that many people who start out on advertising-based sites ultimately develop an appetite for the broader feature set and more committed community, which subscription sites like Match.com and Chemistry.com offer, creating a true complimentary relationship between our various business models,” says Greg Blatt, CEO of IAC.
Match.com previously acquired People Media for $80 million and Singlesnet. Blatt says, “we believe coordinating the adjacent business models will help fuel continued growth for both.” OkCupid co-founder and CEO Sam Yagan will continue to run the site.
OkCupid’s free model has been very successful. It originally launched as an alternative to sites like Match.com, which tend to make money on failing to match users and gathering new users rather than creating relationships. This acquisition may be an attempt for Match.com to funnel users into their subscription-based system. Some feel it is a bad much, but it remains to be seen how this will affect current OkCupid users.
via Mashable, The Atlantic