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The company has decided to initiate a $2 per share special dividend, which will collectively cost approximately $560 million. This choice is puzzling, especially considering Match Group already carries about $800 million in net debt. Critics raise concerns that the company might resort to incurring additional debt to fund this dividend, a move that seems counterintuitive given its already tenuous financial standing.
One possible interpretation of this cash distribution is that it serves to benefit InterActiveCorp, the parent company that retains about 80% of Match Group's outstanding shares. The implications are clear: most of the payout from the special dividend will directly benefit InterActiveCorp rather than being reinvested into Match Group's operations.