Tinder is swiping left on the metaverse! Dating app pulls out of VR dating and part ways with CEO a year after reporting $10 million loss in second quarter – what it equates to $1.7 billion buyout the VR tech startup and dwindling users
- Tinder is pulling out of its efforts to expand into the metaverse
- The online dating company recently reported a $10 million operating loss
- The Metaverse, Pushed By Meta CEO Mark Zuckerberg, May Include Virtual Reality And Augmented Reality
- According to Match Group CEO Bernard Kim, “uncertainty” about what the much-hyped metaverse will actually be means caution is in order.
The company is scaling back its commitment to enter the much-vaunted virtual reality space as it reels from a $10 million operating loss in the last financial quarter.
In February 2021, Match Group purchased South Korean company Hyperconnect for over $1.7 billion. At the time, senior executives announced the purchase as one that would see Match Group’s various dating apps slip into DMs of the future metaverse using Hyperconnect’s video and live chat technologies.
The metaverse, which was heavily pushed by Objective CEO Mark Zuckerberg and other Silicon Valley moguls, may include virtual reality and also augmented reality which would combine aspects of the physical and digital worlds.
Scroll down for video
Tinder cuts commitment to move into virtual reality as it reels from $10 million operating loss in last financial quarter
Tinder CEO Renate Nyborg is leaving the company just a year after taking office. Pictured above is his LinkedIn resignation note
Bernard Kim, CEO of Tinder’s parent company, Match Group, praised how this metaverse technology has been integrated into some of the company’s non-Tinder apps, but also said “uncertainty” on what the much-hyped Metaverse will actually turn out to mean caution is in order.
“I believe a metaverse dating experience is important for capturing the next generation of users, and Hyperconnect has broken new ground in this area,” Kim wrote in a note to shareholders Tuesday.
“However, given the uncertainty as to the ultimate contours of the metaverse and what will or will not work, as well as the more challenging operating environment, I asked the Hyperconnect team to iterate but not not invest heavily in the metaverse yet.
What is the Metaverse?
The “metaverse” is a collection of virtual spaces where you can play, work, and communicate with others who are not in the same physical space as you.
Meta founder Mark Zuckerberg has been a leading voice on the concept, which is seen as the future of the internet and would blur the lines between physical and digital.
“You’ll be able to hang out with friends, work, play, learn, shop, create, and more,” Meta said.
“It’s not necessarily about spending more time online, it’s about making the time you spend online more meaningful.”
While Meta is leading the charge with the Metaverse, he explained that it’s not a one-size-fits-all product that a company can create.
“Just like the internet, the metaverse exists whether Facebook is there or not,” he added.
“And it won’t be built overnight. Many of these products will only be fully realized in the next 10 to 15 years.
“We will continue to carefully assess this space and consider moving forward at the appropriate time when we have more clarity on the overall opportunity and feel we have a service well positioned to succeed.”
The financial loss is particularly surprising as Kim boasted of strong revenue and user base growth across Match’s various platforms, including Match.com, Hinge, Plentyoffish and OkCupid.
Still, attracting new users during the COVID-19 pandemic has been a challenge, as Kim said engagement remains higher among pre-existing users than new ones.
The expensive Hyperconnect purchase dragged the company down, although it supposedly helped Match enter the supposedly lucrative Asia-Pacific market.
“There’s no doubt that buying Hyperconnect when the world was closed was due to COVID-slowed integration and our ability to work together to drive their growth,” Kim acknowledged.
A few paragraphs later, Kim announced that at least one match was ultimately not made in heaven. Tinder CEO Renate Nyborg is leaving the company just a year after taking on the role of chief executive.
“I have loved every moment of the past two years, working with an AMAZING team on the magic of human connection,” Nyborg said in a LinkedIn post.
Until a replacement is found, Kim said he and a team of executives will oversee the day-to-day operations of the popular dating app, which has more than 10 million paying users.
“Loved it…working with an INCREDIBLE team on the magic of human connection,” Renate Nyborg, seen above, said in a LinkedIn post
Match’s reluctance to fully commit to the metaverse is just the latest indication that all is not joyous in the virtual realm.
In October, tech mogul Mark Zuckerberg announced that his Facebook company would now be known as Meta.
In a lengthy video, he outlined his goal of evolving the social media platform into a full-fledged virtual world that would exist alongside and overlap with the physical world – possibly accommodating up to a billion people.
But last week, that grand vision ran into a major problem. During an earnings call, Zuckerberg said there could be staff cuts after revenues fell for the first time in company history and are expected to fall further over the course of the year. next financial quarter.