Thirty-one theses on dating capitalism

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THESIS XVII

PART TWO — THE GRID

The user base has been treated as a national security asset.

The data was considered too sensitive to remain under foreign ownership.

Beijing Kunlun Tech acquired a controlling interest in Grindr in 2016 for $93 million and full ownership by 2018. In 2019 the Committee on Foreign Investment in the United States determined that Chinese ownership of the application constituted a national security risk, on the reasoning that its data on sexual orientation, sexual behaviour and health was too sensitive to sit under foreign control, and ordered divestiture. The sale to San Vicente Acquisition closed on 10 June 2020 at approximately $608.5 million. Reuters subsequently reported that the approved buyer had financial and personal links to the seller.

EVIDENCE SNAPSHOT

2016

CONTROL

Controlling investment by Beijing Kunlun Tech

2018

FULL OWNERSHIP

Chinese owner completed full acquisition of Grindr

2019

DIVESTITURE

United States government ordered the divestiture

~$608.5M

SALE

Approximate value of the completed 2020 sale

KEY FINDING

Beijing Kunlun Tech acquired a controlling interest in Grindr in 2016 for $93 million and full ownership by 2018.

IMPLICATION

A dating database can be treated as strategically sensitive intelligence.

Source apparatus

SOURCE 01

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GOVERNMENT ORDER

Committee on Foreign Investment in the United States. (2019). Divestment order, Beijing Kunlun Tech Co. Ltd. / Grindr LLC.

SOURCE 02

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GOVERNMENT ORDER

Wang, E., Alper, A., & Oguh, C. (2020, June 2). Exclusive: Winning bidder for Grindr has ties to Chinese owner. Reuters.