Beijing Kunlun Tech said it will sell its 98.5 percent stake in Grindr for about $608.5 million to a company called San Vicente Acquisition LLC, Reuters reported Friday.
The deal comes after a U.S. government panel set a June 2020 deadline to sell the app. The panel, dubbed the Committee on Foreign Investment in the United States (CFIUS), has not disclosed its concerns about Kunlun’s ownership of Grindr.
However, the United States has been increasingly scrutinizing app developers over the safety of personal data they handle, especially if some of it involves U.S. military or intelligence personnel.
The foreign investment committee has also reportedly launched a review of a deal that helped boost TikTok, the wildly popular video-sharing app. Chinese tech firm ByteDance acquired the lip-syncing app Musical.ly in 2017 and later merged it with TikTok.