Dating App Bumble to Go Private in $1.3 Billion Deal
Dating app company Bumble has agreed to be acquired by Ithaca Holdings for $1.3 billion, transitioning the company to private ownership. The deal was unanimously approved by Bumble's board.
Bumble, the dating app company, has announced an agreement to be acquired by Ithaca Holdings, a firm led by former tech executives, in a deal valued at $1.3 billion. The transaction will take Bumble private, a move unanimously approved by its board of directors. Bumble's founder and CEO, Whitney Wolfe Herd, recused herself from the board's decision.
The acquisition price represents a significant premium for Bumble shareholders, offering $6.05 per share. This price is substantially higher than the company's recent closing share price and its 30-day weighted average. Bumble's stock had experienced a steep decline since its public debut in February 2021, with shares down nearly 95% from their peak. The company was valued at approximately $335 million at the close of business on Friday.
Under the new ownership, Ithaca's co-CEOs, Ravi Gupta and John Hegeman, are set to lead Bumble. They plan to collaborate with Wolfe Herd to continue the company's mission of facilitating connections. Ithaca Holdings has stated its intention to leverage advanced technology, including artificial intelligence, to enhance Bumble's operations and user experience.
Bumble has recently undergone several strategic shifts in an effort to revive its performance and user engagement. These changes have included leadership transitions, workforce reductions, and alterations to core features, such as removing the requirement for women to make the first move in conversations. The move to private ownership comes as many companies in the online dating sector face evolving user preferences and increased competition.