Ithaca Holdings to Acquire Bumble for $1.3 Billion

Dating app Bumble will leave the stock exchange. The company will be acquired by Ithaca Holdings for $1.3 billion, with shareholders set to receive $6.05 per share.

In recent years, Bumble has struggled both to retain users and to grow revenue. In the second quarter, the number of paying users fell 16.4% year-over-year to 3.2 million.

To win back users, the company has repeatedly changed its pricing, messaging rules and core app features. Bumble also tested an AI-based dating service, but these steps failed to significantly improve results.

Once the deal closes, Ithaca founders Ravi Gupta and John Hegeman will jointly lead Bumble. Company founder Whitney Wolfe Herd will continue working at Bumble.

Source: Reuters