The dating app Bumble is being acquired by Ithaca Holdings for $1.3 billion, both companies announced today.
Ithaca, which is newly formed, according to Bloomberg, will also pay out Bumble's common shareholders $6.05 per share, a 138 percent premium over the Oct. 9 stock price. The app is going private five years after its IPO in Feb. 2021, when the app was valued at $14 billion.
Whitney Wolfe Herd founded Bumble in 2014 with the ethos of "women making the first move." In heterosexual matches, only women could send the first message.
In recent years, it's been in a financially rocky place, with stock prices around 96 percent below the IPO and declining revenue, paying users, and downloads. Wolfe Herd stepped down as CEO in early 2024, only to return a year later.
The app itself has also shifted over time, including launching prompts in 2024 to technically allow men to message first, and then openly changing the rules to fully allow men to message first earlier this year. Rumors of a sale started months before this announcement.
Now, Ithaca co-founders and co-CEOs Ravi Gupta and John Hegeman will become co-CEOs of Bumble. "They will partner closely with Ms. Wolfe Herd to extend Bumble's original vision to help people find connections in life and love into the next era," the press release states.
Wolfe Herd stated in the press release that Ithaca "believes in our women-first mission, and is committed to investing in Bumble's future."
"I believe deeply in Bumble's future, and I look forward to working alongside Ravi, John, and the Bumble team as we continue to innovate, create meaningful connections, and write the next chapter of Bumble’s story. I truly believe the best is yet to come," Wolfe Herd also said.
Earlier this year, Wolfe Herd announced plans for Bumble to remove the swipe feature and usher in a new, AI-powered user experience. Mashable reached out to Bumble to ask if these plans are still in motion.