Bumble sells for $1.3B
What's the story
Bumble, the innovative dating app that revolutionized online matchmaking by letting women take the lead, has agreed to a $1.3 billion buyout by Ithaca Holdings. The deal comes at a time when Bumble is grappling with declining revenue and user base due to evolving dating trends. Notably, the company had laid off nearly a third of its workforce or around 240 employees in 2025.
AI integration
Ithaca's AI vision for Bumble
Ithaca Holdings, co-founded by Ravi Gupta and John Hegeman, has expressed its intention to leverage artificial intelligence (AI) in Bumble.
The duo said in a filing with the US Securities and Exchange Commission (SEC), "Technology should work in service of our deepest source of fulfillment, human connection, and this investment is a bet on the future of humanity."
With this acquisition, Bumble will return to private ownership. Gupta and Hegeman will take over as co-CEOs once the deal is finalized.
AI features
Current AI integration in Bumble
Bumble has already integrated some AI capabilities, like profile creation and message drafting. The platform has also experimented with an AI matchmaking assistant and other swiping alternatives.
However, the specifics of how these new AI tools will be incorporated into Bumble remain unclear at this stage.
Meanwhile, Bumble's founder and current CEO Whitney Wolfe Herd will continue to play an active role in the company.
Acquisition details
Proposed acquisition price and market value
Ithaca offered an acquisition price of $6.05 per share, a whopping 122.4% premium on Bumble's closing price on June 24.
At the time, the company's market value was about $582 million, a far cry from its valuation of some $14 billion when it debuted on Nasdaq in 2021.