Bumble, once valued at nearly $14 billion after its stock market debut, has been acquired by investment firm Ithaca Holdings in a $1.3 billion all-cash deal that will take the dating app company private. The acquisition comes after years of slowing growth and declining user engagement.
Under the agreement, Ithaca will pay $6.05 per share, a 122.4% premium to Bumble’s closing price on June 24, according to Reuters. Bumble shares surged about 50% on Monday following reports of the deal and rose another 56% in early trading Tuesday. The company’s market value stood at about $582 million at Monday’s close, far below its valuation of nearly $14 billion when it went public in 2021.
Founded in 2014 by Whitney Wolfe Herd, Bumble became known for its women-first approach to online dating. The app initially required women to initiate conversations in heterosexual matches, setting it apart from competing platforms. However, the company rolled back that feature in 2026 as it sought to improve user retention, prompting debate over whether it was moving away from a defining part of its brand.
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Bumble said its research found that about 66% of its female users preferred men to make the first move.
“While women making the first move was a radical idea, being women-first was never about prescribing just one way to connect,” Wolfe Herd said.
“Today, our community is asking for more flexibility, less pressure, and more opportunities to create real, meaningful connections, and that is what this new experience provides,” she added.
The acquisition comes as dating apps face broader challenges, with some younger users growing frustrated with endless swiping and seeking more organic ways to meet people. Bumble and its larger rival Match Group, which owns Tinder and Hinge, have struggled with declining user engagement, particularly among Gen Z users. Match has performed better in part because of its portfolio of apps and Hinge’s focus on relationship-oriented dating, Reuters reported.
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Bumble has introduced AI-powered features, adjusted pricing and messaging options, and explored offline events to attract and retain users. Those efforts have yet to reverse the downturn. Its paying users fell 16.4% to 3.2 million in the second quarter, while quarterly revenue has declined for nearly two years.
The trend extends beyond the United States. A 2025 report by UK media regulator Ofcom found that fewer people were using online dating services, with Bumble losing about 300,000 users in the period covered by its research. Some daters have turned to offline activities, including book clubs and board game gatherings, to meet potential partners.
A 2026 Harris Poll also found that 80% of Americans viewed meeting someone in real life as “cute” or “cool.” The survey found that 56% considered app-based meetups “cringe,” while 72% said dating apps had made dating feel more transactional than romantic. It also found that 57% of Americans met partners through friends, work or other in-person settings, compared with 24% who met online.
Under the acquisition agreement, Ithaca Holdings co-founders Ravi Gupta and John Hegeman will become Bumble’s co-CEOs. The deal has received the required shareholder approval, including from Wolfe Herd and Blackstone, which owns about 14% of the company, according to Reuters.