According to Forbes, dating app Bumble recently turned down a $450 Million acquisition offer proposed by Match Group. Sources intimate that Match Group made the offer about two months ago. The umbrella company owns Bumble’s main competitors such as Tinder, OkCupid, and Match.com.
The offer details are still scanty as neither of the camps has come out to admit the existence of the offer. However, the acquisition offer is seen to have been undervaluing Bumble’s true worth. Bumble targets to be raking in over $150 million in revenue by 2018. With such projections, the acquisition did not make practical sense.
Although Bumble is not the market leader in the dating site market, it is the fastest growing site with over 50,000 new users joining every day. Although the app is basically free, the premium features attract a $9.99 monthly subscription, with over 10% of its active users already subscribed. This development puts Bumble on course to achieving their 2018 projections.
Some quarters, however, are speculating that the sale did not go through due to the fallout between Whitney Wolfe and the Match Group. Prior to the existence of Bumble, Whitney worked for Match Group and was a key figure in the founding marketing of Tinder. In 2014, she left Tinder and sued the group for sexual harassment and discrimination. The Acquisition would see Whitney Wolfe return to work for her former employer, which was highly unlikely.
Unlike most dating sites, Bumble has made future growth plans that involve diversifying beyond matchmaking. The company recently launched BumbleBFF, which is designed for women to allow them to make new friends. The company is also at an advanced stage towards launching BumbleBizz, which is a networking platform aimed at rivaling Linkedin.
Whitney Wolfe is the CEO and co-founder of Bumble. She previously worked for Tinder under the Match Group. Her success with Bumble partially due to her experience at Tinder, and partially due to her life experiences on dating sites and other online platforms.
Whitney Wolfe is in a class of her own. She has managed to achieve what other youth still consider a dream. Not only has she managed to be in the Forbes top 30 under 30 list, but also owns a controlling stake in a leading company.