Bumble Nears $1 Billion Take-Private Deal Amid Dating App Struggles
The dating app is reportedly in advanced talks with Ithaca Holdings, a firm founded by a Sequoia partner and former Meta executive, for a deal valuing it at a fraction of its IPO worth.
Bumble is in advanced negotiations to be acquired by Ithaca Holdings, a newly formed investment firm, in a deal that could value the dating app at approximately $1 billion. The potential transaction aims to take Bumble private, a significant reduction from its valuation shortly after its 2021 stock market debut, when it was worth over $14 billion.
Ithaca Holdings, established by a Sequoia Capital partner and a former Meta executive, is reportedly close to finalizing an agreement, with a deal possible as early as this week. However, sources caution that the negotiations could still falter.
The news of the potential buyout sent Bumble's stock soaring, with shares jumping about 50% on Monday. This surge brought the company's market capitalization closer to the reported deal value, though still below the $1 billion acquisition target.
The proposed deal comes as Bumble grapples with declining revenue and a shrinking user base. In the second quarter, the company reported revenue of $210.5 million, a 15.2% decrease year-over-year. The number of paying users also dropped by 16.4% to 3.2 million during the same period. Bumble also posted a net loss of $127.9 million for the quarter.
In an effort to re-engage users, Bumble recently altered its signature feature, removing the requirement for women to initiate conversations with male matches. The company also underwent significant workforce reductions, laying off approximately 30% of its employees last year.
Bumble founder Whitney Wolfe Herd, who co-founded Tinder before launching Bumble in 2014, returned as the company's chief executive in March 2025, a little over a year after stepping down from the role. She is expected to remain involved in the company following the potential acquisition and may roll over a portion of her ownership stake.
Bumble had reportedly been exploring strategic alternatives, including a potential sale, since at least June, with Morgan Stanley advising on the process. The company has faced increased scrutiny in recent years, including reports from 2025 alleging mistreatment of former colleagues and accusations of using offensive language, which Wolfe Herd has denied. Former Tinder executives have also publicly challenged her role in the dating app's early success.