Dating app Bumble in $1 billion takeover talks, report says
The all-cash agreement gives Bumble shareholders $6.05 per share, a 138% premium, as the company plans to remain based in Austin.
- On Monday, Bumble entered advanced talks to be taken private by Ithaca Holdings in a deal valuing the Austin-based dating app operator at roughly $1 billion.
- The company has struggled amid slowing user engagement in a crowded market, with a market valuation of roughly $389 million as of Friday's close.
- Bumble stock surged 50% to $3.81 on Monday with more than 17.7 million shares trading, though shares remain about 91% below the $43 IPO price from February 2021.
- CEO Whitney Wolfe Herd is overhauling the app with AI-powered features to revive growth, while board approval, Blackstone Inc.'s position, and financing terms remain key hurdles.
- A deal could arrive as soon as this week, though Bumble and Ithaca Holdings have not immediately responded to requests for comment.
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Bumble, Online Dating Application, Acquired by Ithaca Holdings for USD 1.3 Billion Amid Declining Subscriber Growth
Online dating app Bumble has agreed to a $1.3 billion acquisition by Ithaca Holdings, a technology holding firm, marking a significant turn for the platform. This comes after years of declining subscriber numbers and falling revenue, amidst a challenging global and Indian online dating market plagued by user fatigue, privacy concerns, and social stigma. Bumble, Online Dating Application, Acquired by Ithaca Holdings for USD 1.3 Billion Amid Decli…
Dating app company Bumble is being taken private by the recently established Ithaca Holdings for $1.3 billion, equivalent to over €1.1 billion. This is significantly less than the company's valuation at its IPO in 2021. Like other dating apps, Bumble is struggling with a declining number of users, as young people appear to be less interested in online dating.
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