Grindr’s Chinese owner says to sell social media app for $608 million

In this picture illustration a Grindr logo is found displayed on a smartphone on April 01, 2019.

Rafael Henrique | LightRocket | Getty Images

Chinese gaming organization Beijing Kunlun Tech Co Ltd said on Friday that it has agreed to provide Grindr LLC, a well known homosexual courting app it acquired in 2016, for about $608.5 million.

The offer arrives right after a U.S. authorities panel set a June 2020 deadline to sell the app. The panel, dubbed the Committee on International Investment decision in the United States (CFIUS), has not disclosed its considerations about Kunlun’s ownership of Grindr.

Having said that, the United States has been progressively scrutinizing app builders about the protection of private details they cope with, in particular if some of it involves U.S. military services or intelligence staff.

Kunlun reported it agreed to offer its 98.59% stake in Grindr to San Vicente Acquisition LLC.

Reuters described earlier on Friday that Kunlun was near to signing a profits offer, citing men and women common with the issue.

One particular of the investors in the team that is nearing a offer to get Grindr is James Lu, a previous executive at Chinese research engine large Baidu, a few of the resources said. The identification of the other buyers in the consortium could not quickly be acquired.

Kunlun is one of China’s most significant mobile gaming companies. It acquired a the vast majority stake in Grindr in 2016 for $93 million and bought out the remainder of the corporation in 2018. It did so without the need of submitting the transactions for CFIUS critique.

Kunlun’s management of Grindr has fueled considerations amid privateness advocates in the United States. Democratic U.S. Senators Edward Markey and Richard Blumenthal sent a letter to Grindr in 2018 demanding responses about how the app would guard users’ privateness less than its Chinese operator.

Reuters reported very last year that Kunlun experienced supplied some Beijing-based engineers accessibility to the private info of thousands and thousands of Americans, including non-public messages and HIV position.

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