This deal could mark the first acquisition for the new holding company.
According to reports, dating app Bumble Inc. (NASDAQ: BMBL) is in advanced negotiations to be taken private by a newly established holding company founded by former Sequoia Capital partner Ravi Gupta.
If the deal is completed, Bumble Inc. (NASDAQ: BMBL) would be valued at approximately $1 billion, representing a substantial premium compared to the company's most recent market capitalization of about $300 million before the news was disclosed.
Gupta was previously a general partner at Sequoia and announced in January that he would leave the venture capital firm to start his own business. The new company was co-founded by Gupta and former Meta chief revenue officer John Hegeman. The Information reported in March that the venture had raised more than $1 billion with the goal of pursuing corporate acquisitions.
In recent years, a number of venture capital firms, including Thrive Capital and General Catalyst, have established holding companies to acquire businesses in traditional industries such as accounting and homeowners association management, with plans to transform their operations using artificial intelligence.
Last month, Sequence Holdings, backed by 8VC, Lux Capital, and Conviction, partnered with billionaire Michael Dell's family office DFO Management to take an insurance brokerage private in a $7 billion deal.