Chinese gaming company Kunlun Tech has agreed to sell gay hookup app Grindr for $608.5 million, after a U.S. government panel ordered the sale in response to apparent national security and privacy concerns.
Reuters reports: The deal comes after a U.S. government panel set a June 2020 deadline to sell the app. The panel, dubbed 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 scrutinizing app developers over the safety of personal data they handle, especially if some of it involves U.S. military or intelligence personnel. Kunlun said it agreed to sell its 98.59% stake in Grindr to San Vicente Acquisition LLC. One of the investors in the group that is nearing a deal to acquire Grindr is James Lu, a former executive at Chinese search engine giant Baidu (BIDU.O), three of the sources said. The identity of the other investors in the consortium could not immediately be learned.