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Is Tinder Worth $5 Billion?

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(Reuters) - Shares of Barry Diller's IAC/InterActive Corp rose as much as 3.2 percent to $70.57 on Friday after it increased its stake in the popular dating app Tinder, according to a Bloomberg report.

IAC bought another 10 percent of Tinder for $500 million, valuing the company at $5 billion, the report said. It added that IAC's market capitalization is about $5.6 billion.

A representative from IAC did not immediately respond to a request for comment.

IAC's stock later trimmed its gains to trade at $69.15, up 1.1 percent.

Tinder has about 10 million users who signed up with their Facebook accounts. The app matches other users based on their geographic location.

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