Blackstone Exits Bumble Investment After Generating High Returns Despite Sharp Stock Decline
Private equity firm Blackstone Inc. is reportedly finalizing its exit from dating app company Bumble after generating a strong return on investment, despite the stock's steep decline since its IPO in 2021. Blackstone and venture capital firm Accel acquired a majority stake in Bumble’s parent company MagicLab for $3 billion in valuation back in 2019. Since then, Blackstone has systematically reduced its position through strategic sales and dividends, achieving an impressive internal rate of return (IRR) of nearly 98%. The stock price dropped by over 96% from the IPO level to current levels. As part of a structured exit plan involving quarterly share sales with UBS, Blackstone is expected to fully divest its stake in Bumble by early next year. It has also exited two board seats held at the company as it moves away from active involvement.
Topics: Blackstone Bumble IPO performance private equity exit