BlueCity has entered a definitive agreement with iRainbow Hong Kong Limited to acquire complete control of ‘Finka’ and all of its assets.
Finka is one of the leading gay social networks, with over 2.7 million registered members, targeted at young men in China. It offers a safe space for users to make new connections, post updates about their lives and broadcast entertaining live streams.
Baoli Ma, BlueCity’s Founder and CEO, said in a statement: “We are excited about this strategic acquisition. Finka complements our Blued app, both in its functionality focused on dating and swipe, and in the demographics of its users.
“We share the same commitment and have been devoted to providing great social experiences to our users through innovative product offerings. After the acquisition, Finka will continue to operate as a separate app backed by our full support economically and operationally.”
The overall deal is worth RMB240 million ($36.4 million), and is BlueCity’s second since the business was listed on the Nasdaq market in July.
It acquired LESDO, a social networking site for the lesbian community, the following month, and is committing to expanding its portfolio and market reach in the local LGBTQ community.
BlueCity will be announcing its third quarter financial results on 2nd December before the US markets open. An accompanying earnings conference call is scheduled for 8am ET on the same day.
Ahead of World AIDS Day on 1st December, BlueCity has pledged to donate RMB1 million ($150,000) to further carry out HIV prevention and education. The company is also going to provide grants to programmes that are specifically looking to prevent HIV in young people.
Visit the BlueCity website here.