Full Breakdown
Bumble Nears $1 Billion Go-Private Deal with Ithaca Holdings
By Drooid · · How we work
Market Context and Competitive Pressure
On Oct 12, a source familiar with the matter said Ithaca Holdings is in advanced talks to take Bumble private at a valuation of roughly $1 billion. The announcement sent Bumble’s shares up about 50% to $3.81, a premium of nearly 200% over the prior market value of $335-$389 million. The move follows a year in which Bumble’s stock has fallen roughly 29% and is down about 90% since its 2021 IPO, as the online-dating market grapples with weaker engagement from Gen Z users.
User and Revenue Trends
Bumble disclosed that total paying users fell more than 11% in full-year 2025 to about 3.7 million, while annual revenue slipped nearly 10% to roughly $966 million. In the second quarter ending June 30, paying users declined 16.4% to 3.2 million. The company has been rolling out AI-powered features in an effort to revive growth.
Deal Structure and Leadership Involvement
Ithaca Holdings, founded by Silicon Valley executives Ravi Gupta and John Hegeman, plans to apply advanced technologies, including artificial intelligence, to its investments. Founder Whitney Wolfe Herd, who returned to the CEO role in March 2025 after a brief step-down in January 2024, is expected to roll over at least part of her stake and remain active in the firm after the transaction.
Upcoming Milestones
The parties indicated that a definitive agreement could be announced as soon as this week, pending completion of negotiations. No comment was received from Bumble or Ithaca Holdings at the time of reporting.
