Bumble Is Going Ahead With An IPO

Bumble Is Going Ahead With An IPO

over 3 years ago2 mins

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Bumble’s finally ready to put itself out there: the women-go-first dating app is preparing for an initial public offering (IPO) early next year ❤️

What does this mean?

Bumble didn’t say how much money it plans on raising, but the IPO could, according to people in the know, value the company at an easy-on-the-eye $6-8 billion. That’s at least double the $3 billion that Bumble-parent MagicLab – which owns three other dating apps – was valued at last year when private equity firm Blackstone bought a majority stake in the company.

Number of US dating app users from 2019 to 2023 | Statista
Number of US dating app users from 2019 to 2023 | Statista

Bumble probably got all hot under the collar after the post-IPO success of its closest rival: Match Group – which owns Tinder, Match.com, and Hinge – has seen its stock price rise by more than 800% since its IPO five years ago 💁‍♀️ That’s cute, but Bumble’s probably hoping its differentiating feature – that women make the first move – will help it stand out from those other eligible suitors.

Source: Google Finance
Source: Google Finance

Why should I care?

Plenty of companies were forced to postpone their IPOs earlier this year, but now they’re looking to ride the US stock market’s huge post-lockdown recovery 🎟 That means Bumble is joining a parade of other tech hotties – including Doordash, Palantir, and Airbnb – that are all thinking about flaunting their assets on the IPO market.

Private equity firms like Blackstone use IPOs as a way to “exit” their investments in private companies and lock down the gains they’ve made on paper 💰 That usually takes them a few years, but Blackstone’s planned exit from Bumble will come just a year after it first invested in the firm. That could be a sign of the weird times we live in: US tech stocks are up almost 40% this year, and it pays to strike while the going is good.

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