Update: IAC Denies $5 Billion Tinder Valuation

Updated April 11, 4:45 p.m.

Bloomberg reported Friday afternoon that dating app Tinder may be worth about $5 billion, but shareholder and venture capitalist Chamath Palihapitiya later tweeted that estimate was incorrect.

Barry Diller’s IAC/InterActiveCorp already has a majority stake in Tinder, and did buy more shares, but not the 10% originally reported to be bought for $500 million, according to Forbes.

Tinder hasn’t contributed any revenue to IAC, which earned about $3.2 billion last year. IAC shares rose 5.7% to $72.28 Friday.

Palihapitiya acquired his stake of Tinder in 2012 when he purchased a majority share of Toronto-based X-Treme Labs, which built Tinder’s first iteration. Tinder, which is 20 months old, has seen its daily active user number skyrocket from 5 million at the end of December to 10 million at present.

This post has been updated to reflect Chamath Palihapitiya’s denial of the originally reported value.

[Bloomberg]

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Write to Charlotte Alter at charlotte.alter@time.com.