Building dating site consolidating debt pros and cons
More Americans are shopping for love online these days, and industry analysts say there's an opportunity for investors in the emerging trend.A recent report by Topeka Capital Markets finds that the combination of tough economic times, a rise in the number of singles, social media and mobile technology is causing a resurgence in the "fast food dating" business of online personals. people are a lot more comfortable posting their personal information online.In short, it's information that you don't want exposed.That is why many online dating websites use security seals to convey trust to their users, reassuring them that they can spend less time worrying about security concerns and more time focused on finding love.Launched in April 1995, is now in 24 countries and hosts websites in 15 languages.
"Mobile services are forecast to be the fastest growing segment over the next five years as operators, including Interactive Corp.All told, the dating services industry is expected to generate .1 billion this year, and nearly 70 percent will come from the thousands of dating websites across the globe.But even though the industry as a whole is growing, not all online personals sites are created equal, and analysts say only a select few make for good investments.Analysts say is best positioned to capitalize on the surge, so much so that Topeka has increased the value of the company's stock to from and recommends investors purchase shares of IAC in anticipation of a spinoff.
(IAC announced in December that the dating website will be reorganized as a separate business called Match Group, with its own chairman, potentially setting the stage for a spinoff.) "A company like Match, they have the best potential to gain significant market share in terms of the number of subscribers," Anthony said.It now has the highest brand visibility in the online personals industry and is the largest personals site in terms of traffic and revenues.