Bumble Acquired by Ithaca Holdings for $1.3 Billion
The dating app, founded by Whitney Wolfe Herd, has been purchased by the US investment firm in a deal valued at £980 million.
Dating app Bumble has been acquired by US investment firm Ithaca Holdings for £980 million (approximately $1.3 billion), a move the new owners described as a "bet on the future of humanity."
Ithaca co-chief executives Ravi Gupta and John Hegeman stated that the investment underscores the enduring need for human connection, relationships, love, and family. They expressed excitement to build on Bumble's legacy and extend its mission to future generations.
Bumble was founded 12 years ago by Whitney Wolfe Herd, who became the world's youngest female billionaire when the company went public on the Nasdaq stock market in 2021. Wolfe Herd, 37, who also co-founded Tinder, will remain actively involved with Bumble, which also owns the dating app Badoo and the friendship app BFF.
Following the announcement of the deal, shares in Bumble surged 57 percent in overnight trading. The company is expected to maintain its headquarters in Austin, Texas, with continued operations in New York City and London.
Launched in 2014, Bumble initially distinguished itself by requiring women to make the first move in heterosexual matches, a feature that set it apart from competitors. While it later adjusted this policy to allow anyone to initiate conversations, the app, like others in the market such as Tinder and Hinge (both owned by Match Group), has faced challenges including declining user engagement and the need to refresh user experiences, including through the integration of AI.
In the quarter ending June 30, Bumble's total revenue decreased by 15 percent, reaching £159 million. Earlier this year, the company introduced new AI features, including tools designed to help users create and improve their dating profiles.
Ithaca's leadership highlighted Bumble's trusted brand and loyal community as key assets. They see significant potential to guide the app into a new era, leveraging technological advancements and evolving dating habits.
Wolfe Herd reiterated her founding belief that meaningful relationships are fundamental to a fulfilling life, a sentiment she feels is more crucial than ever. She expressed strong confidence in Bumble's future and its capacity to positively influence people globally, signaling her commitment to working with the Bumble team to continue innovation and foster connections.