Bumble said on Tuesday it had agreed to be taken private by Ithaca Holdings in a deal valued at $1.3 billion, as the dating app seeks to revive growth amid declining paying users and changing dating habits among Generation Z. Ithaca has offered $6.05 per share, representing a 122.4% premium to Bumble’s closing share price on June 24. Following the announcement, Bumble shares surged 57% to $5.96 in premarket trading. Ithaca co-founders Ravi Gupta and John Hegeman are set to become co-CEOs after the takeover.
Founded in 2014 by Whitney Wolfe Herd, Bumble gained prominence through its women-first approach to online dating. Herd returned as CEO in March 2025 after stepping down in 2023 and has focused on revamping the platform through AI-powered features, group dating and a redesigned user experience. The company also owns Bumble For Friends, which helps users build friendships. These initiatives reflect a broader industry effort to attract younger users who are increasingly seeking more social and meaningful ways to connect rather than relying on endless swiping.
The takeover comes as Bumble faces mounting financial pressure, with paying users falling 16.4% to 3.2 million in the second quarter and quarterly revenue declining for nearly two years. Its market capitalisation stood at approximately $582 million at Monday’s close, compared with a valuation of around $14 billion when it went public in 2021. Rival Match Group, which owns Tinder and Hinge, is also grappling with weaker engagement among younger users. Industry experts believe artificial intelligence could drive a new wave of innovation in dating technology as companies seek to improve user experiences and reverse declining engagement.
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