Grindr's Former Board Chair Sells 1.45M Shares After Buyout Negotations End
Key Points
One of Grindr's majority shareholders sold 1.45 million shares indirectly over three days, for a transaction value of approximately $14.6 million, at a weighted-average price of around $10.07 per share.
The company is currently under investigation due to concerns about whether the board breached its fiduciary duties in connection with the termination of buyout negotiations.
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On Feb. 4, 5, and 6, 2026, majority owner James Fu Bin Lu, more commonly known as James Lu, disposed of 1.45 million shares of Grindr Inc. (NYSE:GRND) in a series of open-market sales, as reported in a SEC Form 4 filing.
Transaction summary
| Metric | Value |
|---|---|
| Shares sold (indirect) | 1,450,000 |
| Transaction value | $14.6 million |
| Post-transaction shares (direct) | 4,455 |
| Post-transaction shares (indirect) | 18,432,101 |
| Post-transaction value (direct ownership) | ~$45,574.65 |
Transaction value based on SEC Form 4 weighted average purchase price ($10.07); post-transaction value based on post-sale share count and the reported closing price.
Key questions
- How does the size of this sale compare to Lu’s recent trading activity?
The sale was more than double the recent median sale size of 600,000 shares for this insider since May 2025, - What is the impact on indirect versus direct ownership stakes?
All 1.45 million shares were sold from indirect holdings via Longview Grindr Holdings Limited, leaving only 4,455 shares held directly and reducing the total indirect position to 18,432,101 shares.
Company overview
| Metric | Value |
|---|---|
| Price (as of 2/14/26) | $10.08 |
| Market capitalization | $1.86 billion |
| Revenue (TTM) | $411.55 million |
| 1-year price change | -45.54% |
* 1-year performance calculated using Feb. 14, 2026 as the reference date.
Company snapshot
Grindr Inc. is a leading technology company that operates a social networking and dating app for LGBTQ communities worldwide. The company leverages a dual revenue model that combines advertising with premium subscriptions to drive growth and user monetization.
What this transaction means for investors
Grindr has been going through a lot lately, as Lu and fellow majority owner Raymond Zage proposed a buyout deal to take the company private in Fall 2025, but negotiations for the deal were terminated later that November.
At the time of negotiations, Lu and Zage together owned 64% of the company, and Lu even stepped down as board chair to focus on the buyout deal. The two majority owners were negotiating the deal with a “special committee” of board members, but the committee ended the talks due to financing concerns.
Lu and Zage wanted to take Grindr private at $18 per share, substantially higher than its current price. The company is now under investigation regarding concerns of whether the decision to terminate negotiations was a breach of fiduciary duties.
The company is also piloting a new subscription service called “Edge,” which is an AI-powered plan that will offer subscribers access to new features such as personalized matches and match insights.
Proposed price points for this pilot have reached as high as $499, which would be significantly higher than any other dating app subscription on the market. Grindr’s current highest subscription is only $44.99, raising questions about why the company would even test subscription prices tenfold that amount.
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Adé Hennis has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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