|
Dating app operator Bumble Inc. will be acquired by Ithaca Holdings in an all-cash deal valuing the company at USD 1.3 billion, as the platform looks to rebuild its business amid declining paying users and prolonged revenue pressure.
Under the definitive agreement announced on Tuesday, Bumble shareholders will receive USD 6.05 per share, representing a 138 per cent premium to the stocks closing price on October 9, 2026. The transaction will take Bumble private, with the company expected to remain based in Austin, Texas, and maintain offices in London, Austin and New York. Bumble founder and Chief Executive Officer Whitney Wolfe Herd will remain actively involved in the business after the acquisition. Ithaca co-CEOs Ravi Gupta and John Hegeman will lead the company following the deals closure and work with Herd on its next phase. In Ithaca, we have found a partner who shares our vision, believes in our women-first mission, and is committed to investing in Bumbles future, Herd said. The companys board unanimously approved the transaction, following a recommendation from an independent special committee that evaluated strategic alternatives. Herd recused herself from the boards deliberations and vote, while affiliates of Blackstone and Herd approved the deal through a written shareholder consent. The acquisition comes as Bumble and larger rival Match Group face declining engagement, with younger users increasingly tiring of endless swiping and seeking more organic ways to build relationships, according to a news report by Reuters. Bumble has tried several measures to revive growth, including price changes, longer reply windows, artificial intelligence tools to help users draft messages, offline events and a new AI matchmaking assistant. However, these efforts have not yet reversed the decline. Reuters reported that Bumbles paying users fell 16.4 per cent to 3.2 million in the second quarter, while quarterly revenue had been declining for nearly two years. The companys market value stood at around USD 582 million at Mondays close, compared with a valuation of USD 14 billion when it went public in 2021. Ithaca said the deal is intended to support the companys next phase of development, with the focus shifting to long-term growth under private ownership. Ithaca Holdings Co-Founders and Co-CEOs, Ravi Gupta and John Hegeman said, As technology and dating habits evolve, we see huge potential to take it into the next era together, building on the foundation Whitney and the talented Bumble team have built. (ANI)
|
