AUSTIN, Texas: Dating app Bumble is set to leave the public markets in a US$1.3 billion deal with Ithaca Holdings after years of declining user engagement and failed efforts to revive growth.

Bumble shares jumped 56 percent to $5.95 in early trading on October 13 after gaining 50 percent on October 12 following media reports about the potential Ithaca deal.

Ithaca has offered $6.05 per share for Bumble, a 122.4 percent premium to the stock's June 24 closing price, the day before it was reported that the company was exploring a sale.

Ithaca co-founders Ravi Gupta and John Hegeman will become Bumble's co-CEOs after the takeover, the company said.

Bumble and its larger rival, Match Group, which owns Tinder and Hinge, have been struggling with declining user engagement as younger users tire of repeatedly swiping on dating apps and seek more organic ways to form connections.

Match has fared better than Bumble so far, helped by its portfolio of apps catering to different demographics and Hinge's international growth.

"With Hinge having gained and continuing to gain share of more intentioned daters, Bumble's niche has eroded. The management, brand, and strategy changes have also not helped," said Chandler Willison, TMT Research Analyst at M Science.

Bumble was founded in 2014 by Whitney Wolfe Herd and became known for its "women-first" approach to online dating. The company rolled back that feature this year as part of efforts to improve user retention.

Herd returned as CEO in March 2025 after stepping down in 2023. Under her leadership, Bumble has tried raising prices, extending reply windows, introducing AI tools to help users write messages, and exploring offline events.

The company has also been testing a new AI matchmaking assistant in response to fatigue with traditional swiping.

Those efforts have yet to produce a recovery. Bumble's total paying users fell 16.4 percent to 3.2 million in the second quarter, while quarterly revenue has been declining for nearly two years.

Its market value fell to about $582 million as of the close on October 12, down from $14 billion when it went public in 2021.

Blackstone, which owns about 14 percent of Bumble according to LSEG data, and Herd have provided the required shareholder approval for the deal.