Chinese gaming company is selling off the world’s leading gay dating app, submitting to pressure from the United States government which had warned of national security and blackmail threats should Beijing be in control of all those dick pics.
Beijing Kunlun is selling Grindr for a cool $608 million to the US-based San Vicente Aquisition Partners, Reuters reported earlier this week.
Kunlun bought the app in two stages in 2016 and 2017 for the combined sum of $245 million. Meaning that, despite the headaches, the company turned over quite a tidy profit in the venture.
The Grindr acquisition was made as part of Kunlun’s grand plans of following in the footsteps of other Chinese tech enterprises, like Tencent and Alibaba, in becoming a global company by expanding into different realms.
However, those dreams were dashed last year by the Committee for Foreign Investment in the United States (CFIUS), which declared that the Chinese company’s ownership of the American app constituted a “national security threat.”
CFIUS reportedly worried that Kunlun could and would hand over user data to the Chinese government, opening up the possibility of Beijing blackmailing US citizens.
Kunlun was given until June 2020 to sell Grindr. The current deal is still under review.