The Tinder application will reduce its stake in initiatives aimed at investing in the metaverse.
Disappointing financial results in the last quarter pushed the Match group, owner of the Tinder dating application , to lower its ambitions in the metaverse. The company boss behind the app, Renate Nyborg, who embodied this new direction, will also step down.
The latter had taken on this role only last September, shortly after Tinder's acquisition of Hyperconnect, a company specializing in video and in artificial intelligence and augmented reality technologies.
The transaction was to be a starting point to enable users to meet virtually in the Tinderverse, as Renate Nyborg called it.
The boss of Match, Bernard Kim, however, indicated in a report intended for investors that the company would reduce its stake in the yards of the metaverse.
We will consider moving forward at the appropriate time when we have a clearer idea of the possibilities [of the metaverse] and feel that we have a service ready to succeed, a- he explained.
The Match group also announced that it would reduce its rate of hiring and its marketing budgets.
Tinder will also reevaluate its Tinder Coins project, in the test phase. This is a currency created for the app that rewards regularly active users, but can also be purchased. It is used, among other things, to activate premium functions of the application. Testing results were mixed, according to the Match report.
Match Group's share price plunged more than 20% late Tuesday at following the announcement of disappointing financial results.
With information from Reuters, and The Verge