Bumble dating app agrees £980 million takeover deal sending shares soaring

Shares in Bumble’s owner leapt 57 per cent overnight after the dating app group agreed to a 1.3 billion US dollar (£980 million) takeover.

The New York-listed company, which owns Bumble, as well as the dating app and website Badoo and friendship app BFF, is being taken private by US investment firm Ithaca Holdings.

The firm’s buyers said the deal marks a “bet on the future of humanity”.

The transaction was agreed after a vote by major shareholders, among them 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.”

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.

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

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.”

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.”

Bumble was publicly listed on Nasdaq in 2021.

It is set to become a privately held company following the deal.

The group is expected to remain based in Austin, Texas.

It is also expected to keep its offices in New York City and London.

The Bumble app launched in 2014.

It differentiated itself from competitors by having women send the first message in heterosexual matches.

The app later changed its approach to allow everyone to initiate conversations.

Its main competitors include Tinder and Hinge, both owned by US company Match Group.

Bumble, along with Tinder and Hinge, have faced declining user engagement.

They have also faced pressure to refresh their app experiences, including using AI.

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

Earlier this year, Bumble announced several new AI features.

These included profile guidance to help people create and enhance their dating profile.