Bumble said on 13 October that it had agreed to be acquired by Ithaca Holdings in an all-cash transaction valuing the dating app operator at $1.3bn, or $6.05 a share.
Why Ithaca Holdings is buying Bumble Inc.
Ithaca describes itself as a long-term holding company for enduring, market-leading technology businesses that combines frontier technology with operating expertise to renew established companies. It was co-founded by Sequoia Capital partner Ravi Gupta and former Meta chief revenue officer John Hegeman.
Deal terms and financing
Class A shareholders will receive $6.05 in cash, about 138% above the unaffected close on 9 October and about 119% above the 30-day volume-weighted average price. A special committee of independent directors recommended the deal; Wolfe Herd recused herself from the board vote. Affiliates of Blackstone and Wolfe Herd have delivered written consent, so no further shareholder vote is required.
Regulatory approvals and timing
Shareholders will receive an information statement, and completion remains subject to customary closing conditions. Bumble said it would not hold a third-quarter results call.
Market context
Reuters reported on 12 October that Bumble was in advanced talks to go private. The company was valued at about $14bn at its 2021 listing, but its paying users and revenue have been shrinking.
