Chinese gaming firm Beijing Kunlun Tech mentioned on Friday that it has agreed to promote Grindr, a preferred homosexual courting app it acquired in 2016, for about $608.5 million (roughly Rs. 4,502 crores).
The deal comes after a US authorities panel requested Kunlun to divest itself of Grindr. The panel, the Committee on Foreign Investment within the United States (CFIUS), has not disclosed its issues about Kunlun’s possession of Grindr.
However, the United States has been more and more scrutinising app builders over the security of private information they deal with, particularly if a few of it entails US navy or intelligence personnel.
Kunlun mentioned it agreed to promote its 98.59 p.c stake in Grindr to San Vicente Acquisition LLC.
Reuters reported earlier on Friday that Kunlun was near signing a gross sales deal, citing folks acquainted with the matter.
San Vincente Acquisition contains a gaggle of entrepreneurs and buyers within the know-how, media and telecommunications industries, a supply near the deal advised Reuters.
One of the buyers within the group that’s nearing a deal to amass Grindr is Chinese-born US citizen James Lu, a former govt at Chinese search engine large Baidu, three of the sources mentioned. The identification of the opposite buyers within the consortium couldn’t instantly be discovered.
CFIUS must approve the most recent deal, in line with one of many sources.
Based in West Hollywood, California, Grindr has over 4.5 million each day lively customers, and describes itself because the world’s largest social networking app for homosexual, bisexual, transgender and queer folks.
Kunlun is one in every of China’s largest cell gaming corporations. It acquired a majority stake in Grindr in 2016 for $93 million and purchased out the rest of the corporate in 2018. It did so with out submitting the transactions for CFIUS assessment.
CFIUS’ subsequent intervention within the Grindr deal underscored its concentrate on the security of private information, after it blocked the acquisitions of US cash switch firm MoneyGram International and cell advertising and marketing agency AppLovin by Chinese bidders.
Kunlun’s management of Grindr has fuelled issues amongst privateness advocates within the United States. Democratic US Senators Edward Markey and Richard Blumenthal despatched a letter to Grindr in 2018 demanding solutions about how the app would defend customers’ privateness beneath its Chinese proprietor.
Reuters reported final 12 months that Kunlun had given some Beijing-based engineers entry to the private info of tens of millions of Americans, together with personal messages and HIV standing.
© Thomson Reuters 2020