Key Takeaways
- • Bumble Inc. is in advanced talks to be taken private in a deal valuing the dating-app company at about $1 billion, according to a Wall Street Journal report cited by Bloomberg.
- • The buyer is Ithaca Holdings, a recently formed entity; unnamed sources told the Journal that a deal could be announced as soon as that week.
- • Bumble shares surged as much as 57% to $3.98 on Monday following the report, their biggest intraday jump since March 12.
- • Bumble did not immediately respond to requests for comment. The company has suffered user declines and in August dropped its women-make-the-first-move model.
- • A takeover would be one of Ithaca Holdings' first major transactions, and it would follow a steep decline in Bumble's market value since its IPO, when the company raised $2.15 billion and was valued at roughly $14 billion.
Summary
Bumble Inc. is in advanced talks to be taken private in a transaction that values the company at around $1 billion, according to the Wall Street Journal, as reported by Bloomberg. The Journal, citing unnamed people familiar with the matter, said the buyer is Ithaca Holdings, a recently formed entity. A deal could be announced as soon as the week of the report. Bloomberg noted that a takeover would be one of Ithaca's first major transactions. Bumble did not immediately respond to requests for comment.
The report sent Bumble's shares sharply higher. The stock rose as much as 57% to $3.98 on Monday, its largest intraday gain since March 12. The move reflects how far the shares have fallen from the company's public-market debut. Bloomberg reported that Bumble's IPO raised $2.15 billion and valued the company at about $14 billion. Reuters has described the stock as trading well below that level, and Bloomberg has reported that the shares are down about 96% from their all-time highs.
The company was founded in 2014 by Whitney Wolfe Herd, a former Tinder cofounder, on the premise that only women could make the first move. Like many dating-app peers, Bumble has seen user declines as younger users have tired of online dating and turned to other ways to meet people, including in-person events. In August, the company abandoned its women-go-first model as its latest effort to boost engagement.
Private equity has a long history with the company. Blackstone's growth equity unit took a majority stake in MagicLab, the parent of Bumble and Badoo, in late 2019 at a valuation of about $3 billion, according to Reuters. Blackstone later sold out of the company early, doubling its money, per coverage cited in the publisher context. The current talks would mark another private-equity-led restructuring of the business, though details of financing and terms have not been disclosed.
The report sent Bumble's shares sharply higher. The stock rose as much as 57% to $3.98 on Monday, its largest intraday gain since March 12. The move reflects how far the shares have fallen from the company's public-market debut. Bloomberg reported that Bumble's IPO raised $2.15 billion and valued the company at about $14 billion. Reuters has described the stock as trading well below that level, and Bloomberg has reported that the shares are down about 96% from their all-time highs.
The company was founded in 2014 by Whitney Wolfe Herd, a former Tinder cofounder, on the premise that only women could make the first move. Like many dating-app peers, Bumble has seen user declines as younger users have tired of online dating and turned to other ways to meet people, including in-person events. In August, the company abandoned its women-go-first model as its latest effort to boost engagement.
Private equity has a long history with the company. Blackstone's growth equity unit took a majority stake in MagicLab, the parent of Bumble and Badoo, in late 2019 at a valuation of about $3 billion, according to Reuters. Blackstone later sold out of the company early, doubling its money, per coverage cited in the publisher context. The current talks would mark another private-equity-led restructuring of the business, though details of financing and terms have not been disclosed.
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