(Bloomberg) -- The Chinese owner of Grindr is required to sell the popular gay-dating app by June 2020 under an agreement with U.S. officials who raised national security concerns about the app's ownership.
Beijing Kunlun Tech Co. said in a statement Monday that it reached a May 9 agreement that prohibits the company from accessing information about Grindr's users and requires the sale of the app before June 30, 2020. Grindr also won't be able to transmit any sensitive information to any entities based in China.
The national security agreement was reached with the Committee on Foreign Investment in the U.S., which vets overseas acquisitions of American businesses for risks to national security. Among the risks the panel considers is whether a deal gives foreigners access to sensitive information about U.S. citizens.
Kunlun completed its acquisition of Grindr in January 2018 and said April 1 that it was in talks with Cfius about the app. If Kunlun doesn't manage to sell Grindr by the June 2020 date, it would sign the app over to a trustee, under terms of the agreement with Cfius.
--With assistance from David Ramli.
To contact the reporters on this story: David McLaughlin in Washington at dmclaughlin9@bloomberg.net;Linly Lin in London at llin153@bloomberg.net
To contact the editors responsible for this story: Sara Forden at sforden@bloomberg.net, Andrew Pollack
©2019 Bloomberg L.P.
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