Chinese Tech Company Selling Grindr for $608 Million

Friday March 6, 2020

The Chinese tech company that currently owns Grindr is selling the gay dating app for $608 million, Reuters reports.

San Vicente Acquisition LLC will be buying a 98.59% stake in Grindr.

The move comes after the U.S. government's Committee on Foreign Investment in the United States set a June 2020 deadline for Beijing Kunlun Tech to sell the app. The government panel did not reveal its concerns with the company owning Grindr.

"However, the United States has been increasingly scrutinizing app developers over the safety of personal data they handle, especially if some of it involves U.S. military or intelligence personnel," Reuters writes.

Kunlun bought a 60% stake in Grindr back in 2016 and was expected to take the dating app public after it acquired 100% of the company in 2018. But things came to a screeching halt in March 2019 when it was reported that the Committee of Foreign Investment in the United States, which oversees purchase of American businesses, pressured Kunlun Tech to put Grindr up for sale "in order to determine the effect of such transactions on the national security of the United States."

Reuters adds: "Kunlun's control of Grindr has fueled concerns among privacy advocates in the United States. Democratic U.S. Senators Edward Markey and Richard Blumenthal sent a letter to Grindr in 2018 demanding answers about how the app would protect users' privacy under its Chinese owner."

The publication reported last year that Kunlun was giving some Beijing-based engineers access to personal information of millions of Americans like private messages and HIV status.