Bumble to go private in $1.3 billion buyout by Ithaca Holdings

Bumble is set to go private following a proposed $1.3 billion buyout by Ithaca Holdings. The offer of $6.05 per share represents a 122.4% premium over the company’s closing price on June 24. The deal has received necessary shareholder approval from founder Whitney Wolfe Herd and Blackstone, which holds approximately 14% of the company.

If the takeover proceeds, Ithaca co-founders Ravi Gupta and John Hegeman will serve as Bumble’s co-chief executive officers. The acquisition follows a significant decline in Bumble’s market value; the company was valued at $14 billion during its 2021 public listing but had fallen to approximately $582 million prior to the deal announcement.

The buyout comes as Bumble struggles with declining user engagement and revenue. The company has faced challenges retaining users, particularly among younger consumers who are reportedly experiencing fatigue with traditional swipe-based dating mechanics. Despite implementing AI matchmaking tools and offline events to boost retention, Bumble reported a 16.4% decrease in paying users to 3.2 million in the second quarter.