(Reuters) - Blackstone Group Inc (BX.N) is taking a majority stake in MagicLab, the parent company of dating app “Bumble” and “Badoo”, valuing the company at about $3 billion, the private equity firm said in a statement on Friday.
Following the deal, Andrey Andreev who is the founder of MagicLab, will sell his stake to Blackstone and be replaced as chief executive officer by Whitney Wolfe Herd, Bumble’s present CEO.
Shares of Match Group, which also owns dating platforms OkCupid and PlentyOfFish, were down 2.5%.
Citi Global Capital Markets is the financial adviser to MagicLab and Baker McKenzie is the legal adviser to the MagicLab’s majority shareholders. Simpson Thacher & Bartlett LLP is the legal adviser to Blackstone.
Reporting by Ayanti Bera in Bengaluru; Editing by Shounak Dasgupta and Shailesh Kuber