Grindr’s Chinese owner Beijing Kunlun Tech to sell gay dating app for US$608 million
- Asked by US government to divest itself, gaming firm has agreed to sell its 98.59 per cent state to San Vicente Acquisition
- Investment group includes former Baidu executive James Lu
Chinese gaming company Beijing Kunlun Tech said on Friday that it has agreed to sell Grindr, a popular gay dating app it acquired in 2016, for about US$608.5 million.
The deal comes after a US government panel asked Kunlun to divest itself of Grindr. The panel, the Committee on Foreign Investment in the United States (CFIUS), has not disclosed its concerns about Kunlun’s ownership of Grindr.
However, the United States has been increasingly scrutinising app developers over the safety of personal data they handle, especially if some of it involves US military or intelligence personnel.
Kunlun said it agreed to sell its 98.59 per cent stake in Grindr to San Vicente Acquisition.
San Vincente Acquisition comprises a group of entrepreneurs and investors in the technology, media and telecommunications industries, according to a source close to the deal.
One of the investors in the group that is nearing a deal to acquire Grindr is Chinese-born US citizen James Lu, a former executive at Chinese search engine giant Baidu, three of the sources said. The identity of the other investors in the consortium could not immediately be learned.