Ithaca Holdings in talks to take Bumble private at roughly $1 billion valuation
Ithaca Holdings (founded by Ravi Gupta and John Hegeman) is in advanced talks to acquire Bumble, Reuters reports. The deal is valued at roughly $1 billion, though timing and terms remain uncertain. Neither side has confirmed the information. The news triggered a 50% stock jump to $3.80 — the biggest single-day gain since the IPO. That reflects the depth of the crisis: in 2021, Bumble was valued at $14 billion, while before the announcement it traded at just $389 million. • Paying users fell from 3.7 million (2025) to 3.2 million (Q2 2026) — a 16.4% decline • Annual revenue dropped 10% to $966 million • The company launched AI dating assistant Bee, replacing manual swiping with algorithmic match selection
AI-processed from TNW; edited by Hamidun News
Investment firm Ithaca Holdings is in advanced talks to acquire dating app Bumble. The deal is valued at roughly $1 billion, with the goal of taking the company fully private. Reuters reported the news, citing a source familiar with the negotiations. Neither party confirmed the information when asked for comment.
The market reaction was clearly positive: Bumble shares rose 50% to $3.80 on Monday, marking the best day since the IPO. Before that, the company's market capitalization stood at just $389 million. Ithaca Holdings, founded by Silicon Valley veterans Ravi Gupta and John Hegeman, specializes in investments in technology companies.
From $14 billion to $1 billion?
When Bumble went public on the Nasdaq in 2021, it was valued at $14 billion. Founder Whitney Wolfe Herd launched the service in 2014 with an innovative idea: only women can send the first message. The concept seemed like a competitive edge in an oversaturated dating market.
However, growth slowed. Reuters reported earlier this year that Bumble was considering a sale amid stagnation in the online dating market. Younger users are losing interest in the swiping interface — a problem Match Group, owner of Tinder and Hinge, hasn't escaped either. The numbers reflect the severity of the situation:
• 2025: paying users fell 11% to 3.7 million • 2025: annual revenue dropped 10% to $966 million • Q2 2026: paying users fell 16.4% to 3.2 million
An attempt at revival
After Whitney Wolfe Herd returned as CEO in March 2025, Bumble rolled out a series of changes. That same month, it launched AI dating assistant Bee, which automatically selects matches for users instead of manual swiping. In August, the company went further, scrapping its signature rule: men can now send the first message too.
In mid-2025, Bumble carried out a major 30% staff cut. If the deal closes, the company will end a five-year run on the public market and return to private status. The timing of a final agreement and its terms remain unknown.
Key Questions Answered
From $14 billion to $1 billion?
When Bumble went public on the Nasdaq in 2021, it was valued at $14 billion. Founder Whitney Wolfe Herd launched the service in 2014 with an innovative idea: only women can send the first message. The concept seemed like a competitive edge in an oversaturated dating market. However, growth slowed. Reuters reported earlier this year that Bumble was considering a sale amid stagnation in the online dating market. Younger users are losing interest in the swiping interface — a problem Match Group, owner of Tinder and Hinge, hasn't escaped either. The numbers reflect the severity
What are the key details on An attempt at revival?
After Whitney Wolfe Herd returned as CEO in March 2025, Bumble rolled out a series of changes. That same month, it launched AI dating assistant Bee, which automatically selects matches for users instead of manual swiping. In August, the company went further, scrapping its signature rule: men can now send the first message too. In mid-2025, Bumble carried out a major 30% staff cut. If the deal closes, the company will end a five-year run on the public market and return to private status. The timing of a final agreement and its terms remain unknown.
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