Bumble looks to friendship to reinvigorate its stock price
You can’t buy friendship, but if you’re a dating app worried about slowing user growth and a slipping share price, acquiring a “community building app” could be the next best thing.
The financial terms of Bumble’s latest acquisition weren’t disclosed, but the dating platform intends to use Geneva to “expand the Bumble For Friends” product. Geneva had raised ~$36M in funding.
The deal comes after a tough 3 years for Bumble and its larger rival Match Group, which owns Tinder, Hinge, OkCupid, and other services. Although Bumble’s user growth has held up better than Match Group’s, investors have fallen out of love with both stocks. Bumble has shed 83% of its value since going public, with Match Group faring only marginally better since the start of 2021. In a bid to cut costs, Bumble laid off ~30% of its workforce earlier this year, some 350 employees.
The deal comes after a tough 3 years for Bumble and its larger rival Match Group, which owns Tinder, Hinge, OkCupid, and other services. Although Bumble’s user growth has held up better than Match Group’s, investors have fallen out of love with both stocks. Bumble has shed 83% of its value since going public, with Match Group faring only marginally better since the start of 2021. In a bid to cut costs, Bumble laid off ~30% of its workforce earlier this year, some 350 employees.
