#USA #Los Angeles #Grindr #George Raymond Zage #James Fu Bin Lu

George Raymond Zage III and James Fu Bin Lu’s Response to Grindr Special Committee Decision

In a significant turn of events, George Raymond Zage III and James Fu Bin Lu, the Proposing Shareholders of Grindr Inc., responded to a recent decision made by the Special Committee of the company’s Board of Directors. This decision revolves around the Proposing Shareholders’ suggestion to acquire the company for $18.00 per share. The Special Committee, citing uncertainties related to financing, stated their decision to cease engagement in negotiations concerning this non-binding proposal.

The response from Zage and Lu comes after weeks of discussions with the Special Committee, as they sought to finalize the details needed for a potential transition to a privately-held entity. Throughout this period, both shareholders had engaged in talks regarding a confidentiality agreement that was imperative for their financial advisors to complete due diligence efforts to secure the necessary debt for the buyout transaction. Despite gathering significant interest for acquisition financing, including expressions of confident commitment from potential investors, the Special Committee halted the negotiation process.

Detailed knowledge of the company's recent performance regarding its financial results, as noted by the Special Committee, has generated optimism among the higher-ups for Grindr. They believe in the company's potential for substantial value generation for its shareholders. Reports from various investment banks following the company’s third-quarter earnings revealed projections of share prices exceeding the proposed acquisition price, further intensifying the conversation around its financial viability.

Interestingly, the Company’s completion of significant share repurchases throughout 2025 at prices surpassing the $18.00 per share proposal highlights the confidence its Board of Directors has in the stock’s performance.

In light of these developments, Zage and Lu have announced the withdrawal of their take-private proposal but remain committed to continuing their investment in the company's shares. Zage expressed intentions to buy additional shares in the market, contingent on adherence to the company’s trading policies and existing regulations. Furthermore, he plans to advocate for increasing the Company's share repurchase programs, underscoring a commitment to enhance returns for shareholders.

Moreover, there’s an emphasis on the importance of strategic discussions with the management team, intended to fuel the ongoing expansion of Grindr’s initiatives, particularly in developing its Global Gayborhood platform. They aim not only to advance telemedicine initiatives but also explore potential partnerships and opportunities spanning across verticals like travel, media, AI, and cryptocurrency.

With a firm belief in Grindr's essential role within its community and among its customers, Zage and Lu are optimistic about the company's future and anticipate numerous years of sustained growth and positive financial outcomes. They continue to express their commitment to engaging constructively with management in pursuit of opportunities that not only benefit shareholders but enrich the communities Grindr serves.

This public statement acts as a precursor to further discussions, addressing both shareholder interests and progressive business strategies that align with Grindr's path forward in a rapidly evolving industry landscape. As these developments unfold, it remains to be seen how Grindr will proceed in pursuing its strategic objectives while managing shareholder expectations effectively.