Bumble to be bought by Ithaca Holdings for $1.3 billion

Bumble, the dating app founded by Whitney Wolfe Herd, agreed to be bought by technology investment firm Ithaca Holdings for $1.3 billion (£980 million). The purchase will take Bumble private after years of falling subscriber numbers and revenue. Ithaca’s Ravi Gupta and John Hegeman will become co‑chief executives, while Wolfe Herd said she will stay actively involved and work closely with the new leaders. Bumble dropped its “women‑first” chat rule in August, saying users wanted more flexibility and less pressure. The rule change sparked debate among members who felt it was a key differentiator. After the takeover news, Bumble’s share price jumped more than 50%, lifting its market value to just over $580 million, far below the $14 billion peak it hit after its 2021 Nasdaq listing. The company has posted a pre‑tax profit only once since going public. In 2025 the firm announced a cut of almost one‑third of its workforce, describing an “inflection point” in online dating. TechCrunch reports that second‑quarter 2026 revenue fell 15.2% to $211 million and the paying‑user base dropped 16.4% to about 3.2 million. A board‑led strategic review recommended the sale, and Wolfe Herd did not vote on the deal. Going private should let Bumble experiment with AI‑driven features and real‑world “Plans” that connect people offline, a shift reflected across the dating‑app market where younger users are turning to activities like board games and book clubs.

Context

Bumble’s original “women‑first” rule meant only women could start a chat, a feature that set it apart from rivals such as Tinder. The recent removal of that rule and the move to private ownership show how the company is adapting to changing user habits and growing pressure to innovate with AI and offline experiences.