According to the Wall Street Journal, unnamed sources say Bumble is nearing an agreement on a go-private transaction valued at around $1 billion, with the possibility of an announcement coming this week. The suitor is Ithaca Holdings, a newly established firm, and a Bumble takeover would rank among its first major moves. Bumble did not promptly provide a comment when asked.
Bloomberg reported in March that Sequoia Capital partner Ravi Gupta and John Hegeman set up Ithaca earlier this year, with a strategy to buy at least one public or private company and inject new technology, possibly including artificial intelligence.
Traders swarmed the headline. On Monday, Bumble stock leapt up to 57% and touched $3.98. That was the most sizable intraday gain since Feb. 11, 2021. The Journal also indicated the timeline could be brisk, with a potential announcement this week.
Take-private deals reveal what buyers think a business is worth off-market. Market Briefs covers these deals free every weekday.
Founded in 2014 by Whitney Wolfe Herd, who earlier helped start Tinder, Bumble initially stood out by letting only women send the first message. As younger users soured on dating apps and gravitated toward in-person meetups, the company, like peers, saw user declines. In August, Bumble dropped the women-go-first rule to spark more engagement. This year it also unveiled an AI-powered assistant intended to act like a personal matchmaker, offering an alternative to the usual profile swiping.
In June, Reuters said Bumble was exploring a sale, so this chatter has been percolating for months. If a deal lands, listen for how Ithaca plans to weave in new technology and how quickly that could reshape the product. If it stalls, the reaction in the stock and Bumble's recent pivots are still valuable tells for how much time and money this corner of the app economy might be worth to you.
Consumer app valuations have moved a long way from their peak. Join Market Briefs free and follow the talks.
