Bumble is getting acquired for $1.3 billion. How will this change the app?

Dating app Bumble is set to be acquired by Ithaca Holdings for a staggering $1.3 billion, as both companies announced today. Ithaca, a newly formed entity, will pay Bumble's common shareholders $6.05 per share, which is a 138 percent premium over the stock price from October 9th. This acquisition marks the end of a private company's five-year journey since its IPO in February 2021, when it was valued at $14 billion.

Bumble was founded in 2014 by Whitney Wolfe Herd, with the mission of empowering women to make the first move in heterosexual matches. However, in recent years, the app has faced financial difficulties, with stock prices plummeting around 96 percent below the IPO and revenue, paying users, and downloads declining. In response, Wolfe Herd stepped down as CEO in early 2024 before returning a year later.

Recently, the app has undergone changes, including allowing men to message first in heterosexual matches, a decision that initially sparked rumors of a potential sale. Now, Ithaca co-founders and co-CEOs Ravi Gupta and John Hegeman will take on the role of co-CEOs of Bumble. They plan to work closely with Wolfe Herd to adapt Bumble's original vision to the next era while staying true to its women-first mission.

Wolfe Herd expressed her excitement about the acquisition, stating that Ithaca believes in the company's women-first mission and is committed to investing in Bumble's future. She also mentioned her deep belief in Bumble's future and her eagerness to collaborate with the Ithaca team to continue innovating and creating meaningful connections.

The app is reportedly considering removing the swipe feature and moving towards an AI-powered user experience, as previously announced by Wolfe Herd earlier this year.