The surge to $3.08 per share offers a brief recovery for a company that has seen its market value crater by more than 90% since its 2021 initial public offering. Prior to the news, Bumble’s market capitalization sat at roughly $335 million, making the reported $1 billion valuation a significant premium over its recent trading price.

Ithaca Holdings, a newly formed firm led by Silicon Valley executives, views the platform as a primary target for its investment strategy. The firm intends to integrate artificial intelligence and other advanced technologies into the company’s operations to revitalize its performance. While the agreement could be finalized as early as this week, sources cautioned that negotiations remain fluid and could still collapse.