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Related Party Transactions
6 Months Ended
Jun. 30, 2022
Related Party Transactions [Abstract]  
Related Party Transactions

 

Note 15 - Related Party Transactions

In the ordinary course of operations, the Company enters into transactions with related parties, as discussed below.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Related Party relationship

 

Type of Transaction

 

Financial Statement Line

 

Three Months Ended June 30, 2022

 

 

Three Months Ended June 30, 2021

 

 

Six Months Ended June 30, 2022

 

 

Six Months Ended June 30, 2021

 

Other

 

Marketing costs

 

Selling and marketing expense

 

$

1,034

 

 

$

1,265

 

 

$

1,526

 

 

$

1,451

 

Other

 

Moderator costs

 

Cost of revenue

 

 

436

 

 

 

 

 

 

597

 

 

 

 

Company owned by a
Director

 

Loans repaid by Whitney Wolfe Herd

 

Limited Partners’ interest

 

 

 

 

 

95,465

 

 

 

 

 

 

95,465

 

 

 

 

 

 

 

 

 

 

 

 

 

Related Party relationship

 

Type of Transaction

 

Financial Statement Line

 

June 30, 2022

 

 

December 31, 2021

 

Parent Company of the
Predecessor

 

Loan granted - current

 

Payable to related parties pursuant to a tax receivable agreement

 

$

388,980

 

 

$

388,780

 

 

Founder Loan

On January 29, 2020, the Company recognized a $119.0 million loan to an entity controlled by the Founder, which was recorded as a reduction of “Limited Partners’ interest” in the consolidated balance sheets. In connection with the dividends paid, the Company’s Founder repaid $25.6 million of the loan (the "Founder Loan"), which was recorded as an increase to Limited Partners’ Interest. As of December 31, 2020, $93.4 million remained outstanding.

On January 14, 2021, our Founder settled the outstanding balance of the loan plus accrued interest for a total of $95.5 million when Bumble Holdings distributed the loan in redemption of 63,643,425 Class A units held by Beehive Holdings III, LP with a hypothetical fair value equal to $95.5 million (such Class A units, the “Loan Settlement Units”). Since the value of the Loan Settlement Units redeemed by Bumble Holdings, determined using the volume-weighted average price of the Class A Common Stock on Nasdaq during the regular trading session as reported by Bloomberg L.P. for the 30-day period beginning on February 16, 2021 (the “Applicable VWAP”) exceeded the implied value of the Loan Settlement Units on the settlement date for purposes of repaying the loan, Bumble Holdings delivered to Beehive Holdings III, LP 3,252,056 Common Units which are exchangeable for shares of Class A common stock having a value based on the Applicable VWAP equal to such excess amount. The settlement of the Founder loan was recorded as an equity transaction with no net impact to the accompanying condensed consolidated balance sheet.

Underwriting of IPO

Blackstone Securities Partners L.P., an affiliate of Blackstone, underwrote 4.1 million of the 57.5 million shares of Class A common stock offered to the market in the IPO, with underwriting discounts and commissions of $1.935 per share paid by the Company.

 

Redemption of Class A Common Stock and Purchase Common Units in Connection with the IPO

The Company used the proceeds from the issuance of 48.5 million shares ($1,991.6 million) in the IPO to redeem shares of Class A common stock and purchase Common Units from our Sponsor, at a price per share / Common Unit equal to the IPO price, net of underwriting discounts and commissions.

 

Payable to related parties pursuant to a tax receivable agreement

 

Concurrent with the completion of the IPO, the Company entered into a tax receivable agreement with pre-IPO owners including our Founder, our Sponsor, an affiliate of Accel Partners LP and management and other equity holders (see Note 4).

 

 

Other

The Company uses Liftoff Mobile Inc. ("Liftoff"), a company in which Blackstone affiliated funds hold a controlling interest, for marketing purposes. The Company uses TaskUs Inc. ("TaskUs"), a company in which Blackstone affiliated funds holds more than 20% of ownership interest, for moderator services.