Bumble in talks over $1bn take-private deal with Ithaca Holdings
Dating app operator Bumble is in advanced talks to be acquired by newly formed investment firm Ithaca Holdings in a take-private deal valuing the company at approximately $1bn, according to a report by The Wall Street Journal.
Dating app Bumble is reportedly in advanced negotiations to be acquired by a newly formed investment firm called Ithaca Holdings, said to be valuing the company at around $1 billion, according to a report by The Wall Street Journal. Ithaca Holdings, co-founded by ex- Sequoia Capital partner Ravi Gupta and Meta executive John Hegeman, aims to acquire businesses where it can deploy advanced technologies like artificial intelligence to enhance operations and spur growth.
This proposed acquisition would mark Ithaca's first major deal. An announcement could come as early as this week, though negotiations remain ongoing and no agreement is certain. Bumble's founder, Whitney Wolfe Herd, is expected to retain some ownership and involvement after the transaction, according to WSJ sources. The deal follows a significant drop in Bumble's valuation since its 2021 initial public offering, when the company's market cap soared to over $14 billion.
Its market value has since plummeted to approximately $389 million. Shares in Bumble surged around 50% on Monday following news of the potential buyout. The company has grappled with declining user engagement and heightened competition in the online dating space, especially among younger demographics. Bumble reported a 15.2% year-on-year revenue decline in Q2 2026, reaching $210.5 million, and its paying user base shrank by 16.4% to 3.2 million.
Founder and CEO Wolfe Herd, who returned to the role in March 2025, has been leading a business restructuring, introducing AI-powered features and altering the original women-first messaging approach. Private equity firm Blackstone, which backed Bumble prior to its IPO, still holds about 14% of the company. This acquisition comes as tech investors are increasingly targeting take-private transactions of listed businesses trading at a fraction of their previous market heights, presenting opportunities for performance improvement through operational changes and technology investments.
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