Dating app operator Bumble is in advanced talks to be acquired by newly formed investment firm Ithaca Holdings in a take-private deal valuing the company at approximately $1bn, according to Private Equity Wire, citing a report by The Wall Street Journal.
Parties and deal status
Ithaca Holdings was founded by former Sequoia Capital partner Ravi Gupta and former Meta executive John Hegeman, according to Private Equity Wire. Ithaca Holdings is seeking to acquire businesses where it can deploy advanced technologies, including artificial intelligence, to improve operations and drive growth, according to the report.
The proposed acquisition of Bumble would be among Ithaca Holdings’ first major transactions, the report said. A deal could be announced as early as this week, although negotiations remain ongoing and an agreement is not guaranteed, according to the report.
Bumble founder Whitney Wolfe Herd is expected to retain an interest in the business by rolling over part of her existing stake and remaining involved following the transaction, according to people familiar with the discussions cited by The Wall Street Journal and reported by Private Equity Wire.
Valuation context and market reaction
The potential transaction follows a sharp decline in Bumble’s valuation since its 2021 initial public offering, when the company reached a market capitalisation of more than $14bn, according to the report. Bumble’s market value had fallen to approximately $389m before news of the talks emerged, the report said.
Shares in Bumble rose around 50% on Monday following reports of the potential buyout, according to the report.
Operating performance and strategy changes
Bumble has faced declining user engagement and increased competition in the online dating market, particularly among younger users, according to the report. Bumble reported a 15.2% year-on-year decline in second-quarter 2026 revenue to $210.5m, while its paying user base fell 16.4% to 3.2 million, the report said.
Wolfe Herd returned as chief executive in March 2025 and has been overseeing a restructuring of the business, including the introduction of AI-powered features and changes to its original women-first messaging model, according to the report.
Private equity firm Blackstone, which backed Bumble before its public listing, retains a stake of approximately 14% in the company, according to the report.
Deal backdrop
The proposed acquisition comes as technology-focused investors increasingly pursue take-private transactions involving listed businesses trading at significantly lower valuations than their previous market peaks, with opportunities to improve performance through operational changes and technology investment, according to the report.
Take-private transactions typically involve an acquirer purchasing publicly traded shares to remove a company from public markets, after which the company is no longer listed and can be operated outside public-market reporting requirements.
