Bumble shares soar on $1-B buyout talks

Shares of dating app operator Bumble surged as much as 57 percent on Monday following reports that the company was in advanced talks to be acquired and taken private in a deal worth approximately $1 billion.

According to Bloomberg, citing a report by The Wall Street Journal, newly established investment firm Ithaca Holdings is negotiating a potential takeover that could be announced as early as this week.

The discussions remain ongoing, and no final agreement has been announced.

Bumble shares climbed to $3.98 during Monday’s trading session, marking their biggest intraday gain since February 2021.

Founded in 2014 by former Tinder cofounder Whitney Wolfe Herd, Bumble became known for its women-first dating model, which originally required women to initiate conversations.

However, the company has struggled with declining user engagement as younger consumers increasingly express frustration with dating apps and explore alternative ways of meeting potential partners.

In August, Bumble abandoned its original women-first messaging requirement as part of efforts to attract and retain users.