Kunlun Tech has confirmed that it is currently in talks with the United States Government over the potential sale of GBTQ dating app Grindr.
Last week, media reports revealed that the Committee on Foreign Investment in the United States (CFIUS) contacted the Chinese technology company to pressure it into selling. CFIUS described Kunlun’s ownership of Grindr as “a national security risk”.
Users of the online dating platform had previously expressed their concerns about whether or not their data could be accessed by the Chinese Government.
The confirmation comes amidst an intensification of the so-called “trade war” between the two nations. CFIUS has blocked a number of acquisitions from Chinese companies, and some commentators believe the conflict could lead to the “worst recession in recent Chinese history”.
Grindr was in the process of pursuing an IPO on the Shenzhen stock exchange, but this is now highly unlikely to land in 2019.
The app has also been in court over the past few weeks facing a harassment lawsuit from user Matthew Herrick. The plaintiff’s ex-boyfriend had made a fake profile of him inviting men to his home address.
However, the case was thrown out as Grindr is not responsible for user generated content of this kind.
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