Grindr’s IPO plan is back in action, as the U.S. has decided to drop its opposition to Grindr being owned by a Chinese gaming company.
Currently, Beijing Kunlun Tech owns Grindr. The company slowly bought a majority share of the app before completely buying it later on. Kunlun Tech then planned to take Grindr’s Stock public.
But then earlier this year, the Committee on Foreign Investment in the United States (or CFIUS) said that Kunlun Tech’s ownership of the California-based app company is a national security risk. Because of this, the Chinese company announced its desire to sell the app.
But now, it seems all of that is in the past. According to a file from Beijing Kunlun Tech to the Shenzhen Stock Exchange, the U.S. Committee “now had no opposition to launching the listing process” for Grindr. Kunlun is thus going forward with listing Grindr, either wholly or partially, on a foreign stock exchange.
When? The time is “dependent on overseas market conditions.” In the meantime, the company’s stockholders (which again, are Kunlun Tech executives) are due to vote on the listing proposal on August 15.
This is a surprise turnaround for the CFIUS, which has become increasingly hostile towards Chinese firms that own social media groups. The Trump administration even expanded the powers of the CFIUS to review investments in “crucial technologies.” The administration did so after being worried that Chinese investments could be used to gain access to valuable early-stage tech.
It seems with this turnaround, China will continue to be the owner/home of the two biggest gay dating apps in the world. Blued, which has 40 million users, and Grindr with its 4 million users.
