Dating app company Bumble has agreed to be acquired by Ithaca Holdings in a $1.3 billion all-cash transaction that will take the company private after five years on the public market. Announced on October 13, 2026, the agreement comes as Bumble faces declining revenue, fewer paying users, and challenges retaining customers on its dating platform.
Under the acquisition agreement announced by Bumble, shareholders will receive $6.05 per share in cash, representing a 138% premium over the company’s unaffected closing share price on October 9. The offer also represents approximately 119% above Bumble’s 30-day volume-weighted average share price as of that date.
Bumble’s Acquisition and Leadership Changes
The agreement followed a review of strategic alternatives by an independent committee of Bumble’s board, supported by external legal and financial advisers. The committee recommended the transaction, which the board unanimously approved after founder Whitney Wolfe Herd excluded herself from discussions and voting.
Affiliates of Blackstone and Wolfe Herd subsequently provided the shareholder approval required for the acquisition. Once completed, Ithaca co-founders Ravi Gupta and John Hegeman will become Bumble’s co-CEOs, while Wolfe Herd will remain actively involved in the business.
Bumble will operate as a privately held company and is expected to retain its headquarters in Austin, Texas, alongside offices in London and New York City. Wolfe Herd said Ithaca shares the company’s women-first mission and intends to invest in its future development.
Declining Revenue and Paying Users
Founded by Wolfe Herd in 2014, Bumble initially distinguished itself by requiring women to initiate conversations. The company went public in 2021 at a valuation of approximately $14 billion, substantially higher than its current acquisition value.
According to Bumble’s second-quarter 2026 financial results, revenue declined 15.2% year over year to $211 million. Paying users also fell 16.4% to approximately 3.2 million, reflecting continued difficulties in maintaining subscriber growth.
The company has been reassessing its swipe-based dating experience while introducing features intended to encourage more meaningful connections. Its development efforts include artificial intelligence-powered interactions and alternatives to traditional profile swiping.
Bumble Develops New Dating Features
Bumble announced Plans in July 2026, a service designed to bring users together through organized in-person activities rather than relying entirely on online conversations. The Plans app focuses on curated social events and opportunities for users to meet outside the dating platform.
In August, Wolfe Herd also discussed plans to introduce a new interaction system that could eventually replace the conventional swipe-based experience. The company has not provided a confirmed release date for that redesign.
Following the acquisition announcement, Bumble said it would file its third-quarter financial report by November 9 but would not hold its usual earnings conference call. The transaction remains subject to applicable closing conditions, including required regulatory approvals.
Featured image credits: bookextraordinary.com
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