BUMBLE AGREES £980M TAKEOVER BY US FIRM ITHACA HOLDINGS

Bumble, the dating app platform that also owns Badoo and BFF, has agreed to a takeover by US investment firm Ithaca Holdings in a deal valued at £980 million ($1.3 billion). The deal followed a vote by major shareholders, including private equity firm Blackstone and asset manager BlackRock. Ithaca Holdings co-founders and co-chief executives Ravi Gupta and John Hegeman said the investment was "a bet on the future of humanity", adding that people and societies would always need "connection, relationships, love, and family". Bumble, listed on the Nasdaq since 2021, is set to become a privately held company once the deal completes.

Bumble founder Whitney Wolfe Herd, who also founded Tinder, did not take part in the shareholder vote but approved the deal by written consent and said she would remain "actively involved" with the business, though her future role has not been specified. Wolfe Herd became the world's youngest female billionaire when Bumble floated on the stock market in 2021. Shares in Bumble jumped 57% in overnight trading after the takeover was announced. The group is expected to remain based in Austin, Texas, while keeping offices in New York City and London.

Bumble, along with Tinder and Hinge, has faced declining user engagement and pressure to refresh its app experience, including through artificial intelligence. The company's total revenue fell 15% to $211 million (£159 million) in the quarter to 30 June, it reported. Earlier this year, Bumble announced new AI features, including profile guidance to help users build their profiles. Once the deal completes, Bumble will move from public ownership on the Nasdaq to becoming privately held under Ithaca Holdings.