Dating app Bumble is in advanced discussions to be taken private by Ithaca Holdings in a deal valuing the company at approximately $1 billion, according to economictimes.indiatimes.com. The talks come amid a slowdown in growth within the online dating sector. Following the news, Bumble's shares rose about 21% in afternoon trading.
The potential transaction follows earlier reports that Bumble was exploring a sale as the online dating market faces challenges. Ithaca Holdings, known for acquiring consumer brands, is leading the bid to take Bumble private. The deal would mark a significant shift for Bumble, which has been publicly traded since its IPO. The source familiar with the matter confirmed the valuation and the advanced stage of negotiations.
This move reflects broader trends in the online dating industry, where growth has decelerated after a pandemic-driven surge. Bumble's $1 billion valuation in a privatization deal compares with other recent transactions in the sector, highlighting investor interest in consolidating and restructuring dating platforms. The deal could allow Bumble to focus on long-term strategy away from public market pressures.
Bumble's shares surged 21% on the news, underscoring investor optimism about the privatization. The company’s next steps will depend on finalizing terms with Ithaca Holdings, with the market closely watching for an official announcement and deal closure.