It may not be well known that Shenzhen-listed Kunlun Tech is the Chinese owner of U.S. gay dating app Grindr. The Beijing-based company is talking with the US agency that overseas cross-border acquisitions for national security risks, after an earlier report said the agency could be aiming to force a divestiture, reports Caixin Global.
Kunlun Tech made headlines when it purchased the popular Grindr in two stages in 2016 and 2017 for a combined total of about US$250 million. It said at the time the move was aimed at diversifying beyond its roots as a game operator into social media.
A forced sale of Grindr would mark one of the first such cases for CFIUS involving an internet asset. It would also mark one of the first times an increasingly security-conscious White House used CFIUS to undo a deal that was already consummated.