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.
Forbes reported last year: With more than 3 million daily active users, Grindr keeps a lot of social data on them. The hookup app’s privacy policy notes they collect a wide range of personal data including location information, messages, and even HIV status if users choose to provide it. One of the most exposed groups is likely black gay and bisexual men, because in 2017 they accounted for the largest number of HIV diagnoses at 9,807, followed by Hispanic with 7,436 and whites at 6,982, according to the Centers for Disease Control and Prevention. CultureBanx noted herein lies the problem, the Committee on Foreign Investment in the United States stated Grindr has violated data protection laws. They claim the platform is sharing information on sexual preferences and HIV-status to third parties without proper consent and is forcing Kunlun to sell Grindr.
