According to people familiar with the matter, U.S. dating app operator Bumble is in advanced talks with Ithaca Holdings regarding a take-private deal that would value the company at approximately $1 billion.

The Austin, Texas-based company's shares surged about 50% on Monday to close at $3.80, marking its largest single-day gain. As of Friday's close, the company's market capitalization stood at approximately $389 million.

Earlier this year, reports indicated that Bumble was exploring a sale amid slowing growth in the online dating industry.

"Going private doesn't look like a strategic masterstroke — it looks more like an admission that Bumble's current strategy is failing," said Paolo Pescatore, analyst at PP Foresight. "A mere change of ownership won't miraculously solve these fundamental problems."

Bumble was founded in 2014 by CEO Whitney Wolfe Herd, pioneering the "women-first" approach in online dating.

However, after a blockbuster Nasdaq listing in 2021 at a staggering $14 billion valuation, the company has struggled with post-pandemic growth deceleration.

Herd stepped down as CEO in January 2024 and returned to the role in March. Under her leadership, Bumble has rolled out AI-driven features and new user engagement methods in an effort to revive growth.

In 2025, Bumble's total paying users declined by more than 11% to approximately 3.7 million, while annual revenue fell nearly 10% to about $966 million.

In the second quarter ended June 30, the platform's total paying users dropped 16.4% to 3.2 million.

"AI is not a panacea, and neither is another round of cost-cutting," Pescatore said. "Bumble desperately needs to give consumers a compelling reason to come back — and more importantly, to pay."