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Grindr’s Chinese owner says no deal with US yet on sale, in response to potential blackmail concerns

  • Beijing-based Kunlun, which has owned gay dating app Grindr since 2016, say it is communicating with the US regarding its ownership
  • The statement comes after reports that Kunlun has been forced to sell Grinder amid US concerns about national security

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Grindr apps capture. Photo: Handout

Beijing Kunlun Technology, the Chinese owner of Grindr, says it has yet to reach any agreement with US authorities in response to reports that the firm has been forced to sell the gay dating app amid concerns that its ownership constitutes a national security risk.

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Kunlun is currently communicating with the Committee on Foreign Investment in the US (CFIUS), a federal panel focused on national security, regarding its ownership of Grindr but so far the two sides have not reached a deal, the Beijing-based company said in a filing to the Shenzhen Stock Exchange on Monday.

Kunlun, a little-known Chinese video game company, took full ownership of one of the world’s most popular LGBTQ social networking platforms based in West Hollywood, California, through two deals between 2016 and 2018 worth US$245 million in total.

CFIUS has ordered Kunlun to sell Grindr citing the risk that the personal data it handles could be exploited by Beijing to blackmail American officials or defence contractors, according to reports from The New York Times and The Wall Street Journal, citing unnamed sources. Reuters first reported the case on Wednesday.

Kunlun and CFIUS did not immediately respond to emailed requests for comment.

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Kunlun said in its filing that since the takeover, the company has increased Grindr’s market share and monetisation ability “in accordance with the laws and regulations where the business is operated”. In 2018 the gay dating app recorded 572 million yuan (US$85 million) in operating revenue, and had total assets of 215 million yuan, according to unaudited figures cited in the filing.

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