US stocks: Bumble shares surge 52% on reports of $1 billion privatisation talks

Bumble's stock skyrocketed 21% on Monday following a report from The Wall Street Journal about the dating app potentially going private for around $1 billion. The prospective buyer is Ithaca Holdings, a newly established firm led by two Silicon Valley executives, according to sources familiar with the situation. Trading activity in Bumble shares was temporarily halted due to market fluctuations and may resume at a higher price upon reopening.

Prior to the reported deal, Bumble's market value stood at approximately $335 million, suggesting a nearly 200% premium over the current offer. The company's shares have experienced a decline of over 90% since its initial public offering in 2021. Founder Whitney Wolfe Herd is anticipated to contribute at least a portion of her ownership in Bumble to the sale and continue her involvement with the company, according to the individuals involved.

Wolfe Herd co-founded Bumble in 2014, following her role in co-founding Match Group's Tinder. Ithaca Holdings intends to implement cutting-edge technologies, including artificial intelligence, in its investment strategy, with Bumble being one of the first significant acquisitions for the firm. A potential acquisition might take place as early as this week, provided that negotiations do not falter, as reported by The Wall Street Journal.