Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Bumble's $14 billion date: Blackstone-backed dating app soars on market debut

TechnologyFeb 11, 2021 05:05PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. Bumble Inc. (BMBL) makes stock IPO on Nasdaq in New York City 2/2

By Noor Zainab Hussain, Niket Nishant and Krystal Hu

(Reuters) - Shares of Bumble Inc, backed by Blackstone Group (NYSE:BX) Inc, soared more than 76% in their stock market debut on Thursday, fetching a $14 billion valuation for the operator of the dating app where women make the first move.

The company's shares opened at $76 on the Nasdaq, well above its initial public offering (IPO) price of $43 per share. Austin, Texas-based Bumble operates two major apps, Bumble and Badoo, which touts over 40 million monthly active users worldwide.

In an interview on Thursday, Bumble chief executive Whitney Wolfe Herd said the global pandemic encouraged people to build a relationship and meet new people on their phones.

"People are building meaningful relationships digitally first, and then the physical follows. This is a really phenomenal shift toward safety and engineering more accountable experiences," said Wolfe Herd, who expects the trend to continue in a post-COVID 19 world.

Bumble, unique among dating apps for its "women-first approach," generates revenue mostly from premium subscriptions. The company reported $376.6 million in revenue in the first nine months of 2020, according to filings. The Bumble app had 1.1 million paying users, with 1.3 million on the Badoo app and other services.

Wolfe Herd, 31, has become one of the youngest female executives leading a public company. A co-founder of rival app Tinder, she later sued the company, alleging that her co-founders subjected her to sexual harassment. Tinder parent Match Group Inc (NASDAQ:MTCH), which denied the allegations, paid about $1 million to settle the dispute.

Bumble plans to use the $2.2 billion proceeds from the IPO to pay off debt, fund international growth, and pursue acquisitions.

"Right now we're very focused on taking the dating opportunity globally," said Wolfe Herd. "We also hope to have the preeminent platform for meeting whoever you're looking for, for whatever use case, in the long run."

In 2019, Blackstone paid about $3 billion to acquire a majority stake in MagicLab, which owned the Bumble and Badoo apps at the time, from founder Andrey Andreev. Wolfe Herd was named Bumble's chief executive officer after the deal.

Bumble also joins the ranks of Snowflake Inc, Airbnb Inc and DoorDash Inc, all of which had strong first-day pops when they debuted last year.

Stellar first-day trading gains such as these are likely to fuel criticism from some venture capital investors, including Benchmark's Bill Gurley, who has argued that investment banks underprice offerings so their investor clients can win big in first trades.

Some investors have also pushed companies to consider direct listing, where bankers have little influence on the price at which the stock is sold. Goldman Sachs (NYSE:GS) and Citigroup (NYSE:C) are the lead underwriters for the offering.

Bumble's $14 billion date: Blackstone-backed dating app soars on market debut
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email