Bumble agrees to $1.3 billion buyout by Ithaca Holdings

what happened

Newsmetry API reported that Bumble agreed on Tuesday to be taken private by Ithaca Holdings in a $1.3 billion all-cash transaction. Holders of Class A common stock will receive $6.05 per share. That represents about a 138% premium to the unaffected closing price on October 9, 2026, and nearly a 119% premium to the 30-day volume-weighted average price on that date.

Seeking Alpha said Bumble shares gained more than 57% in premarket trading on Tuesday after the announcement. The stock had already advanced over 49% on Monday after reports that the company was discussing a potential take-private deal. Once the transaction closes, Ithaca founders Ravi Gupta and John Hegeman will serve as Bumble’s co-CEOs. The company is expected to remain based in Austin and keep offices in London, Austin and New York City.

Founded in 2014 by Whitney Wolfe Herd, Bumble also owns Badoo and BFF. Herd resumed the CEO role in March 2025 after leaving it in 2023. The company has sought to restore growth through AI-powered tools, group dating and a redesigned member experience. Still, paying users fell 16.4% to 3.2 million in the second quarter, while revenue had declined for almost two years; second-quarter revenue was down 15%.

Bumble’s market capitalization was about $582 million at Monday’s close, compared with a $14 billion valuation when it went public in 2021. Bumble launched at $43 per share and reached $85 during its first few trading days. The company and Match Group, which owns Tinder and Hinge, have faced weaker engagement as younger users show fatigue with endless swiping. In August, Bumble reportedly allowed men to send the first message after a match.

why it matters

The transaction puts a private-market value on a company whose public valuation has fallen sharply since 2021. It also highlights the pressure facing major dating platforms as Bumble and Match Group contend with weaker engagement and declining subscriber numbers.

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