Bumble taken over for £980m in ‘bet on future of humanity’

The owner of dating app Bumble has agreed to a 1.3 billion US dollar (£980 million) takeover in what the firm’s buyers said marks a “bet on the future of humanity”. (Alamy/PA)Clara Margotin2 minutes agoCity Edition

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The owner of dating app Bumble has agreed to a 1.3 billion US dollar (£980 million) takeover in what the firm’s buyers said marks a “bet on the future of humanity”.

New York-listed Bumble, which also owns dating app and website Badoo and friendship app BFF, has agreed to be taken private by US investment firm Ithaca Holdings.

The deal was agreed after a vote by major shareholders, which include private equity giant Blackstone and asset manager BlackRock.

Ithaca Holdings co-founders and co-chief executives Ravi Gupta and John Hegeman said: “Technology should work in service of our deepest source of fulfilment, human connection, and this investment is a bet on the future of humanity.

“People and societies will always need connection, relationships, love, and family, and we are excited to build on Bumble’s legacy and share its mission with the next generation of members.”

While Bumble founder and shareholder Whitney Wolfe Herd did not take part in the vote, she approved the transaction by written consent and said she would remain “actively involved” with the business.

Although her future role at the dating app remains unclear, she has stated that she will work closely with its new owners.

Shares in the group jumped 57% overnight after the deal was announced.

Bumble, which was publicly listed on Nasdaq in 2021, is set to become a privately held company following the deal.

The group is expected to remain based in Austin, Texas, and keep its offices in New York City and London.

Launched in 2014, the Bumble app differentiated itself from competitors by having women send the first message in heterosexual matches.

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The app, whose main competitors include Tinder and Hinge, both owned by US company Match Group, later changed its approach to allow everyone to initiate conversations.

Bumble, along with Tinder and Hinge, have faced declining user engagement and pressure to refresh their app experiences, including using AI.

Bumble group’s total revenue dropped 15% to 211 million US dollars (£159 million) in the quarter to June 30.

Earlier this year, Bumble announced several new AI features, including profile guidance to help people create and enhance their dating profile.

Ithaca’s co-founders said: “Bumble has a unique combination of essential attributes, including its trusted brand and loyal community.

“As technology and dating habits evolve, we see huge potential to take it into the next era together, building on the foundation Whitney and the talented Bumble team have built.”

Ms Wolfe Herd said: “Bumble was founded on a simple belief: meaningful relationships are essential to a healthy, happy life.

“Today, that belief feels more important than ever.”

She added: “As Bumble’s founder, my belief in this company and its potential to positively impact people around the world has never been stronger.

“That is why I will remain actively involved with Bumble.

“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.”