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Bumble is set to go private in a $1.3 billion deal with Ithaca Holdings after years of slowing growth and a shrinking user base, as changing dating habits put pressure on the online dating industry.
The deal sent Bumble’s shares soaring 56% on Tuesday, following a 50% jump the previous day.
Breaking it down: going private means Bumble will no longer be publicly traded on the stock market. This could give the company more freedom to rethink its business and experiment with new features without the pressure of meeting investors’ expectations every quarter.
Founder Whitney Wolfe Herd will remain involved in the business. Under its new ownership, Bumble plans to explore AI-powered features, real-life meetups through its Plans app, and alternatives to its familiar swipe-based dating model.
The reason: Bumble has struggled to turn its business around. Its paying user base fell 16.4% to around 3.2 million in the second quarter of 2026, while revenue has been declining for nearly two years.
The company’s market value had shrunk to about $582 million as of Monday’s close, a far cry from its $14 billion valuation when it went public in 2021.
Now, the company is trying to adapt to younger users who are growing tired of endless swiping and want more meaningful ways to connect. Going private could give it more room to test new ideas and rethink how people meet through its platform.
The larger picture: but Bumble isn’t alone in this struggle. The wider dating-app industry is facing declining engagement as users grow tired of endless swiping and look for more organic ways to meet people, from book clubs to group activities.
Rival Match Group, which owns Tinder and Hinge, has also faced pressure, although Hinge has gained ground among people seeking serious relationships. Bumble’s numbers tell a similar story: its revenue fell 15.2% year-on-year to $211 million in Q2 2026, while its paying user base shrank 16.4% to around 3.2 million.
The slowdown is visible across the industry. After a rebound in mid-2024, app installs and sessions weakened towards the end of the year. 2025 began on a stronger note, but momentum faded again, with installs ending the year 11% below average and sessions down 6%.
For dating apps, the challenge is no longer just attracting users. It’s giving them a reason to stick around.
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