Grindr, the very popular gay dating app, just got 60% of its shares bought by a Chinese games developer Beijing Kunlun Tech Co.
This was revealed in a statement to the Shenzhen stock exchange, where Beijing Kunlun detailed how they offered $93 million in cash to New Grindr LLC. The chairman of Beijing Kunlun, Zhou Yahui, became a billionaire after they listed shares last year.
According to Bloomberg Billionaires Index Zhou Yahai is worth $1.7 billion and has overseen seven deals since April.
After BK announced the deal with Grindr, their shares rose by the maximum daily 10 percent limit. However, it is still awaiting an antitrust review by the US Government.
The remaining shares will be held by Grindr’s founder, Joel Simkhai, and his employees.
Joel wrote about the deal in a blog post, saying: “For nearly seven years, Grindr has self-funded its growth, and in doing so, we have built the largest network for gay men in the world. We have taken this investment in our company to accelerate our growth, to allow us to expand our services for you and to continue to ensure that we make Grindr the number one app and brand for our millions of users.”
At the moment, we have no clue whether or not they planning on bringing the app to China. I am personally unsure, given that the LGBT community there still faces widespread discrimination. The app is currently accessible there, but availability has been intermittent in the past, and there are apparently access issues reported in various cities.
Geng Le, owner of gay dating app Blued, had this to say: “It shows the Chinese capital market’s acceptance of LGBT social networks and their huge potential. And it may make us rethink our strategy by considering going public in the Chinese stock market instead of overseas ones.”