Bumble bought for $1.3bn in 'bet on the future of humanity'
The dating app which recently ditched its "women-first" chat rule has been bought by an investment firm.
Key points
- Ithaca Holdings is buying loss-making Bumble for $1.3bn, with directors Ravi Gupta and John Hegeman becoming co-CEOs.
- Founder Whitney Wolfe Herd says she will remain actively involved and work closely with the new owners.
- Bumble's shares jumped on the news, valuing the company at over $580m, far below its 2021 peak of more than $14bn.
Investment firm Ithaca Holdings has agreed to buy dating app Bumble for $1.3bn. The company's directors, Ravi Gupta and John Hegeman, will become co-chief executives of the loss-making business.
Bumble founder and current chief executive Whitney Wolfe Herd said she would remain actively involved with the company she set up 12 years ago. It is unclear what her role will be, but she said she will work closely with the new owners.
New owners on AI and humanity
Gupta and Hegeman said they wanted to use technology to renew and accelerate businesses in a world transformed by AI. They said technology should serve human connection and described the investment as a bet on the future of humanity.
Their comments contrast with a debate over AI safety, in which some experts claim the speed of its development threatens the future of humanity.
Technology should work in service of our deepest source of fulfillment, human connection and this investment is a bet on the future of humanity.
— Ravi Gupta and John Hegeman
Share price and financial record
Bumble's share price soared as news of the deal emerged, lifting its valuation to over $580m. That is still far below a peak of more than $14bn reached after the company floated on the Nasdaq in 2021.
Since going public, Bumble has made an annual pre-tax profit only once, in 2023. In the following two years it reported steep losses, while working to incorporate new technology, including AI, into its app.
App changes and industry pressure
Bumble launched in 2014 with a women-first chat rule, but recently abandoned it, prompting debate about whether the app had lost its distinctive feature. In August, Wolfe Herd said the community was asking for more flexibility and less pressure.
Dating apps have faced pressure as younger users grow disillusioned. Bumble said in 2025 it would cut almost a third of its workforce, and Ofcom reported UK adults were spending less time on dating apps than three years earlier.
