Bumble stock surges on report of $1B buyout talks

Investing.com -- Bumble (NASDAQ: BMBL) shares jumped 21% on Monday after The Wall Street Journal reported the dating app is in advanced talks to go private in a deal valuing 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 might continue higher when trading resumes.

Bumble had a market value of around $335 million as of Friday’s close, meaning the reported deal would represent a premium of nearly 200%. The company’s shares have fallen over 90% since its 2021 initial public offering.

Founder Whitney Wolfe Herd is expected to roll at least part of her stake in the dating app as part of the transaction and remain involved with the company, the people said. Wolfe Herd founded Bumble in 2014 after having co-founded Match Group’s Tinder.

Ithaca Holdings plans to apply advanced technologies including artificial intelligence to its investments, and Bumble would be one of the first major moves for the firm.

A deal could come as soon as this week, assuming talks don’t fall apart, the Journal reported.

Original Article

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