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Due to Increasing Tensions, US Forcing Chinese Company to Sell Grindr By 2020

Thursday May 16, 2019

The U.S. government is forcing a Chinese company it doesn't trust to sell the gay dating app Grindr by 2020, according to a report from CNN.

The move comes after tensions between the U.S. and China increased due to trade and national security issues.

Beijing's Kunlun Tech bought a 60% stake in Grindr back in 2016 and was expected to take the dating app public after it acquired 100% of the company in 2018. But things came to a screeching halt in March when it was reported that the Committee of Foreign Investment in the United States, which oversees purchase of American businesses, pressured Kunlun Tech to put Grindr up for sale "in order to determine the effect of such transactions on the national security of the United States."

In a statement Monday, the Chinese company said it reached an agreement with the CFIUS to sell Grindr by June 30, 2020. In the meantime, Kunlun Tech says it will not send any sensitive information from the app to China. CNN writes it's "not clear how that will be enforced."

Grindr's privacy policy collects personal data from its users, including location information, messages, as well as HIV status should users provide such details. Last year, the company came under fire when it was reported Grindr was sharing users' HIV info with other companies. An exec apologized at the time and said it will no longer participate in the act.

In August it was reported Grindr was headed for an IPO but because of the CFIUS's latest movie, Kunlun will now be working on the auction process to sell Grindr in full, Reuters reported at the time, adding that sources said the "IPO would have kept Grindr under Kunlun's control for a longer period of time."

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