Bumble shares jumped 21% on Monday after The Wall Street Journal reported advanced talks to take the dating app private at a valuation of roughly $1 billion. The reported buyer is Ithaca Holdings, and a deal could come as soon as this week if talks hold.
Bumble shares jumped 21% on Monday after The Wall Street Journal reported that the dating app is in advanced talks to go private. The deal would value the company at roughly $1 billion.
The buyer is Ithaca Holdings, a firm recently founded by two Silicon Valley executives, according to people familiar with the matter. Trading in Bumble shares was paused due to volatility, and the stock might continue higher when trading resumes.
Bumble had a market value of around $335 million as of Friday's close, so the reported price would be a premium of nearly 200%. Even so, the shares have fallen over 90% since the company's 2021 initial public offering.
Founder Whitney Wolfe Herd is expected to roll at least part of her stake into the transaction and remain involved with the company, the people said. Wolfe Herd founded Bumble in 2014 after co-founding Match Group's Tinder.
Ithaca Holdings plans to apply advanced technologies, including artificial intelligence, to its investments, and Bumble would be one of the firm's first major moves. The Journal reported that a deal could come as soon as this week, assuming talks don't fall apart.
Source: Investing.com
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