Private equity firm Blackstone Inc. (NYSE:BX) is reportedly finalizing an exit from Bumble Inc. (NASDAQ:BMBL) after doubling its investment, while the dating app’s stock has declined.
Blackstone Generates 98% IRR on BMBL Investment
Blackstone and venture firm Accel invested $2.1 billion to acquire a majority stake in Bumble’s parent company MagicLab in 2019 at a $3 billion valuation. From its IPO in 2021, Bumble’s shares are now down about 96.1%.
Despite the collapse, Blackstone generated a 98% internal rate of return by systematically reducing its exposure, according to a Business Insider report.
Following a deal with UBS that allowed the sale of just under 5% of the company each quarter, Blackstone is positioned to exit fully by early next year.
Cashing Out Early
The foundation of Blackstone’s return relied on moving capital before the stock declined. In late 2020, the firm reportedly utilized Bumble’s debt to issue a $334 million dividend to itself. During Bumble’s IPO, Blackstone reduced its position from 83.6% to 53.2%, netting nearly $2 billion.
In 2021, with shares trading above $50, Blackstone executed another $1 billion stock sale. By the end of 2023, shares had dropped below $14.
To illustrate the asset’s depreciation, the firm’s remaining 22.4 million shares are currently worth approximately $66.75 million—a fraction of the $1.084 billion they yielded from a similar volume of shares sold in 2021.
Board Exits and Turnaround Pressure
As Blackstone accelerates its stock sales, it has also vacated its two allocated board seats. Jonathan Korngold stepped down in June, followed by Martin Brand in August.
Meanwhile, Bumble faces a 16.4% year-over-year decline in paying users. Chandler Willison, an analyst at M Science, told Business Insider that a private equity group is the “most obvious” potential buyer for Bumble because public markets apply a “lot more pressure to improve performance.”
Warning against a lengthy transition, Willison stated: “The longer management says, ‘We’re in a turnaround period,’ the less confidence not just Blackstone, but investors in general, are going to have with the company.”
How Has BMBL Performed in 2026?
Price Action: At the last check, the BMBL stock was trading 0.40% lower in premarket trading on Friday. It is down 16.53% year-to-date, declining by 54.57% over the last year, and up 6.05% over the last six months. It closed 1.71% higher at $2.98 per share on Thursday.
Benzinga’s Edge Stock Rankings indicate that BMBL maintains a weak price trend in the short and medium terms but a strong trend in the long term.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock
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