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Grindr sells 60% stake to China gaming company for $93 million

Grindr sells 60% stake to China gaming company for $93 million

Grindr is one of the biggest gay dating apps in the world

Grindr has sold a 60% stake to Chinese online gaming company Beijing Kunlun Tech for $93 million.

The Shenzhen-listed company announced late Monday (11 January) that it had bought 98,448,000 shares in New Grindr – valuing the six-year-old startup at $155 million.

The remaining shares will be held by founder Joel Simkhai and his employees.

Simkhai called the investment ‘a huge vote of confidence in our vision to connect gay men to even more of the world around them.’

‘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,’ he wrote in a blog post.

‘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.’

In an investor’s note, Kunlun said the ‘shocking’ investment would help the company expand beyond its core markets in gaming and China.

Kunlun’s chairman Zhou Yazhou head Grindr’s board and will appoint two the the four other members.

The company emphasized that the deal still had to pass an antitrust review.

In the fiscal year 2014, New Grindr had revenue of $31.74 million – with profit of $13.74 million – 66% from its 10.5 million members in 196 countries.

Kunlun shares closed at 33.15 yuan on Monday, down 9.18%.