Bumble's shares jumped almost 50% after the Wall Street Journal reported that the dating-app company is in advanced talks to go private in a deal valuing it at about $1bn.
Bumble (NASDAQ: BMBL) shares surged about 50% on Monday after the Wall Street Journal reported that the dating-app operator is in advanced talks to be taken private. The paper said the deal would value the company at around $1bn.
The stock closed at $3.80 on Monday, up 49.6% from Friday’s $2.54. It rose as much as 57% to $3.98 during the session. Daily closes from July to 9 October ranged from $2.50 on 7 October to $3.28 on 2 July, so Monday’s close sits above anything in that window.
The reported buyer is Ithaca Holdings, a recently formed company. According to the WSJ, a deal could be announced as soon as this week, and a takeover of Bumble would be one of Ithaca’s first major transactions. A Bumble spokesperson did not immediately respond to requests for comment.
Sponsored content
Ready to put what you’ve learned into practice?
Try IG’s platform with £10,000 in virtual funds and practise trading
without putting your own money at risk.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Sponsored content
Learn the markets with IG Academy
Build your knowledge with IG Academy educational content, then use a
demo account to practise what you’ve learned on the IG platform.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Sponsored content
See how trading works before risking real money
IG’s demo gives you access to thousands of markets and £10,000 in
virtual funds, so you can explore the platform and test your ideas first.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Sponsored content
Turn trading theory into practical experience
Learn with IG Academy, explore charts and market tools, and practise
strategies in a simulated trading environment before going live.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Sponsored content
Ready to take your learning further?
IG combines market education, analysis and an established trading platform,
giving you the tools to keep learning as you develop your trading skills.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
The story is reported rather than announced. No price per share has been announced, so the gap between Monday’s $3.80 close and any eventual offer is unknown. Before Monday the shares had drifted from about $3.20 in early August to $2.54 on Friday.
BMBL shares surged about 50% on Monday, snapping back from a $2.50 low hit earlier in the month.
The backdrop is a weak one for the sector. Dating apps have lost users, with young people drifting towards in-person events. Bumble, founded in 2014 by Whitney Wolfe Herd, a former Tinder cofounder, dropped its women-go-first model in August to lift engagement.
The next step is whether a deal is announced this week and, if so, at what price per share. Until then the move rests on a single newspaper report.
The AskTraders Analyst Team features experts in technical and fundamental analysis, as well as traders specializing in stocks, forex, and cryptocurrency.
