Reuters reports that Beijing Kunlun Tech will sell the popular gay dating app Grindr in the immediate future, with the sale price said to be set around $600 million.
The move comes just four years after Kunlun bought the app from its original creator, Joel Simkhai, in 2016. It also comes after the Committee on Foreign Investment in the United States, a government watchdog group, ordered Kundun 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 sexual orientation.
Related: Warning: China may start keeping an intelligence file on you based on your Grindr profile
The identity of the buyers of Grindr remains unknown, though sources told Reuters one of the investors is James Lu, a Chinese tech mogul. Lu has not commented on the possible sale.
How about we take this to the next level?
Our newsletter is like a refreshing cocktail (or mocktail) of LGBTQ+ entertainment and pop culture, served up with a side of eye-candy.
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. Heterosexual Chinese executives in charge of Grindr have also criticized the LGBTQ community and denounced marriage equality.
Chrisk
I’d love to be an investor in Grindr. What other company that can regularly insult their own customers and yet still keep making recording breaking profits year after year?
Kind of reminds me of the vain queens that like to hang out with Aaron Schock.
jasentylar
Did you see Mr. Schock came out today via Instagram?
Me2
That’s because Grindr is free and delivers what’s needed with the swipe of screen. If it was a fee based pay-for-service app, it would’ve gone belly-up years ago.
btedge
Grindr needs to go belly up! I will celebrate when that happens.
BTE