One of China’s biggest mobile gaming companies is selling popular gay dating app Grindr for $608 million after pressure from US authorities concerned over the potential misuse of user data.
National security officials in Washington fear the platform — which bills itself as the world’s largest social networking space for LGBT people — could be used by the Chinese government to blackmail Americans with government security clearances, according to media reports last year. Beijing Kunlun Tech took a majority stake in the app in 2016 and bought the remaining equity two years later for a combined $245 million, but was reportedly ordered to relinquish the platform by US officials last year.
It will sell a 98.59 percent stake in Grindr to San Vicente Acquisition, a holding company based in the US state of Delaware, according to a company filing with the Shenzhen Stock Exchange on Friday. The deal is awaiting approval from a US committee authorised to review transactions involving foreign investments, the filing said.The platform violated European Union privacy regulations by sharing the GPS data, age and gender of its users with third-party companies to help target advertisements, according to a report by a Norwegian consumer rights group.
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