Continue Reading Below
The Committee on Foreign Investment in the U.S. informed Beijing Kunlun Tech Co. – a Chinese mobile gaming firm -- of its worries, according to Reuters, prompting the company to look for a buyer for Grindr instead of preparing for a planned initial public offering.
Kunlun purchased Grindr twice -- including a majority stake in 2016 and outright buy in 2018 -- but did not submit either transaction for a CFIUS review, which is done when a foreign country is investing or purchasing a U.S. business.
A Grindr spokesperson did not respond to FOX Business’ request for comment.
The gathering of personal data via phone apps has become a point of scrutiny by the CFIUS panel, according to Reuters. Grindr pegs itself as the largest social networking site for lesbian, gay, bisexual, transsexual and queer individuals. The company gather personal information – including location and messages – from its roughly 27 million users.
The policy prompted a federal inquiry from Democratic Sens. Ed Markey of Massachusetts and Richard Blumenthal of Connecticut.