Overview
- Bumble agreed Tuesday to be acquired by Ithaca Holdings for $1.3 billion, with shareholders receiving $6.05 per share and the board approving the deal subject to customary closing conditions.
- Ithaca co‑founders Ravi Gupta and John Hegeman are slated to become Bumble’s co‑CEOs and Whitney Wolfe Herd will remain actively involved while recusing herself from the board vote.
- The takeover follows a sustained decline in Bumble’s business, including second-quarter 2026 revenue of about $210–211 million (down roughly 15.2%) and a drop in paying users to about 3.2 million (down about 16.4% year over year).
- News of advanced talks pushed Bumble’s stock up roughly 50% before the deal and the $6.05 offer is a large premium to recent trading levels but a steep fall from the roughly $14 billion valuation at its 2021 IPO.
- Ithaca, led by former Silicon Valley executives, says it plans to focus on AI and product changes at Bumble, which could allow longer-term experimentation, possible restructuring, and renewed investment in efforts to win back younger users.