Earlier this month we reported that Kunlun Tech, the Chinese gaming company that’s owned Grindr since 2016, would sell the popular gay dating app in the near future, with the sale price said to be set at a staggering $608.5 million. (We’d love to know how they negotiated that last $500k, because $608 million is clearly not enough.)
Well, that future is now! Forbes reported Thursday that the deal has gone through.
The move came just four years after Kunlun bought the app from its original creator, Joel Simkhai. The Committee on Foreign Investment in the United States, a government watchdog group, ordered Kunlun to sell off a majority stake in the company last year. With various apps and social media sites under increased scrutiny for sharing user information, the US government deemed Grindr a security threat with the potential to share all kinds of private information including HIV status, personal messages and photos, and sexual orientation.
The identities of the buyers remain unknown — come on guys, no pic no chat — though sources told Reuters one of the investors is James Lu, a Chinese tech mogul. Lu has not commented on the possible sale.
A company called San Vicente Acquisition Partners was set up to make the purchase and allow the buyers to stay anonymous.
Grindr sports more than 4.5 million users and posted record-high revenue in 2019. Nevertheless, the app has come under fire for numerous allegations, including racial insensitivity, leaking user information, and not doing enough to prevent catfishing or other harassment of users.