Grindr, Inc. shares rose 4.3% in extended trading on Tuesday after the dating app company confirmed buyout interest from some of its top shareholders.

Chair James Lu and director Ray Zage sent a letter to the board expressing their intention to buy out Grindr's outstanding shares and take the company private, the company said on Tuesday. It is not a formal offer, although Grindr said it has formed a special committee of independent directors to evaluate any definitive proposal that may emerge.

Grindr is a same-sex relationships and casual dating-focused app, launched in 2009. The company's shares were listed on the New York Stock Exchange through its merger with a special purpose acquisition company in November 2022.

Semafor first reported the deal talks on Monday, pegging the buyout price at around $15 a share, which values Grindr at $3 billion. The report stated that Lu and Zage were in talks to secure debt financing for the deal from private-equity firm Fortress Investment Group. The duo collectively owns about 70% of Grindr.

The company's shares rose 10.7% on Monday and declined 3.8% the next day, setting Grindr's market cap at $2.45 billion. On Stocktwits, the retail sentiment shifted to 'extremely bullish' as of late Tuesday, from 'bearish' the previous day.

Notably, Grindr's shares have declined 29% year-to-date amid a broader slowdown in the dating apps market.

Match Group, the parent company of Tinder and Hinge, has reported multiple quarters of a dip in paying users, while Bumble has faced challenges in growing its base of premium subscribers.

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