Bumble shares exploded higher after Ithaca Holdings agreed to acquire the dating-app operator in an all-cash deal valuing the company at $1.3 billion, or $6.05 per share. The agreement followed a Wall Street Journal report that sent BMBL stock up about 50% on Monday to $3.78, its biggest one-day percentage gain on record.
The offer represents a roughly 138% premium to Bumble's October 9 close. An independent special committee recommended the transaction, and the board approved it unanimously, excluding founder Whitney Wolfe Herd, who recused herself. Blackstone affiliates and Wolfe Herd provided the required shareholder approval through written consent. Ithaca co-founders Ravi Gupta and John Hegeman will become co-CEOs after completion, while Wolfe Herd is expected to remain involved.
The acquisition arrives during a difficult operating stretch. Bumble's total paying users fell 16.4% in the latest reported quarter to 3.2 million, and revenue has declined for nearly two years. The company has tested AI-assisted messaging and a matchmaking assistant, but those initiatives have not yet produced a convincing recovery. Ithaca plans to apply advanced technology and operating expertise to Bumble's established businesses.
At the current trading price around $5.96, the remaining upside to the $6.05 cash offer is roughly 1.5% before costs and taxes. The deal remains subject to regulatory approvals and other closing conditions. Bumble went public in 2021 at $43 per share and reached a peak market value above $14 billion, but its market value after the rally is still above $580 million.
