Bumble shares jumped nearly 50% on Monday after the Wall Street Journal reported the dating app is in advanced talks to be taken private by Ithaca Holdings for roughly $1 billion, a steep discount from its $14 billion valuation at its 2021 IPO. The potential deal, which could be announced this week, comes as Bumble faces slowing growth and increased competition in the online dating market.
Takeover Talks Send Bumble Shares Soaring
Shares of Bumble Inc. (BMBL) surged 47.6% on Monday, closing at $3.75, according to MarketBeat. The jump followed a report that Ithaca Holdings, a newly formed investment firm, is in talks to acquire Bumble for approximately $1 billion, as first reported by the Wall Street Journal. The stock reached as high as $3.97 during trading, with over 17.7 million shares changing hands—more than 7.5 times the average daily volume. According to MarketBeat, Bumble’s stock had previously closed at $2.54.
At the time of the report, Bumble’s market capitalization was approximately $335 million, which is expected to increase with the potential deal. As of Monday’s close, the company’s market value stood near $485 million.
Ithaca Holdings and the $1 Billion Valuation
Ithaca Holdings was founded earlier this year by Ravi Gupta, a former Sequoia Capital partner, and John Hegeman, a former Meta executive, according to Bloomberg. The firm’s strategy reportedly involves acquiring companies and integrating new technologies, potentially including artificial intelligence, to improve user experiences. The potential $1 billion valuation, while a substantial premium over Bumble’s recent market capitalization, represents a significant decline from its peak valuation of $14 billion around the time of its 2021 initial public offering, as noted by Yahoo Finance.
Bumble’s Recent Performance and Challenges
The potential takeover comes as Bumble has faced challenges in recent quarters. Second-quarter revenue decreased by 15.2% to $210.5 million, while the number of paying users fell 16.4% to 3.2 million, according to both Yahoo Finance and BigGo Finance. Adjusted operating profits also declined, falling from $94.6 million to $72.9 million year-over-year. These struggles prompted founder Whitney Wolfe Herd to return as CEO in March 2025, as reported by Bloomberg. Earlier this year, Bumble abandoned its signature rule requiring women to initiate conversations, a move aimed at boosting engagement.
In 2021, Bumble priced its IPO at $43 a share and the stock opened at $76 on its first trading day, the Journal reported at the time. Even with Monday’s surge, shares sit about 91% below that IPO price.
Analyst Views and Investor Activity
Despite the takeover talks, some analysts remain cautious. Citi assigned a potential enterprise value of $1 billion to Bumble but maintained a Neutral rating with a $3.20 price target, as reported by GuruFocus. Several firms have adjusted their price targets in recent months, with UBS Group lowering its target from $4.50 to $3.00 and Wall Street Zen downgrading the stock to a “hold” rating, according to MarketBeat. Insider selling has also been notable, with Blackstone affiliates having sold $28.2 million of Bumble stock that month, Reuters noted.
Metrics that value earnings, such as the price-to-earnings ratio, are not applicable due to Bumble’s continued losses.
What’s Next: Deal Timing and Potential AI Integration
A deal could be announced as soon as this week, but no final decision has been made, according to the Wall Street Journal. Ithaca Holdings’ stated interest in integrating AI technologies could signal a potential shift in Bumble’s strategy, as highlighted by BigGo Finance. According to Asktraders, the reported valuation of $1 billion is well above Bumble’s current market cap, but it is still a fraction of the company’s value at its IPO. The next steps will involve finalizing the terms of the deal, securing financing, and gaining board approval.
Blackstone Inc. owned about 22% of the company at the time of potential sale talks, citing LSEG data. Blackstone affiliates had also sold $28.2 million of Bumble stock that month, Reuters noted.