Bumble to be acquired by Ithaca Holdings for $1.3 billion

Bumble has entered into a definitive agreement to be acquired by Ithaca Holdings in an all-cash transaction valued at approximately $1.3 billion. Under the terms of the deal, shareholders will receive $6.05 per share, representing a significant premium over recent trading prices.

The acquisition will take the Austin-based dating app private. Following the completion of the transaction, Ithaca Holdings Co-CEOs Ravi Gupta and John Hegeman will become Co-CEOs of Bumble. Founder Whitney Wolfe Herd is expected to remain actively involved with the company.

The move follows a period of financial difficulty for Bumble, including declining revenue and a shrinking base of paying users. The company's valuation has dropped significantly from its 2021 Nasdaq debut, when it was valued at approximately $14 billion. The transition to a private company is seen as an opportunity to focus on long-term strategy and AI-driven features away from public market scrutiny.