Leena Rao / TechCrunch:
There was an audible gasp in the Twittersphere this morning, after Bloomberg reported that buzzy mobile dating app Tinder was valued at $5 billion in a recent transaction.
According to Bloomberg, IAC recently purchased 10 percent of the company for $500 million from Social+Capital Partnership founder and former Facebook exec Chamath Palihapitiya. Palihapitiya had accumulated Tinder shares via his investment in Xtreme Labs (acquired by Pivotal), because the mobile development group had done work for Tinder in exchange for equity.
