Bumble Enters Private Deal At $1 Billion Valuation

Dating-app company Bumble Inc. is in advanced talks with newly formed firm Ithaca Holdings to be taken private at a valuation of roughly $1 billion, according to The Wall Street Journal. While the deal price reported by other outlets as $6.05 per share represents a total value closer to $1.3 billion based on their reporting, Bumble's market capitalization stood at approximately $335 million before trading halted and shares surged about 50% following initial reports of talks. The buyer firm was co-founded by Ravi Gupta and John Hegeman, with plans to apply artificial intelligence to its investments as part of a mission to improve people's lives through technology. Bumble Chief Executive Officer Whitney Wolfe Herd is expected to remain involved in the company after returning as CEO in 2025 following months where she laid off roughly 30% of staff. Blackstone, which backed Bumble from early days and took controlling interest in 2019, has trimmed its holdings considerably though it retains an ownership share around 14%. Since going public in 2021, Bumble stock has fallen more than 90%, reflecting sour sentiment among young users on dating apps.