After a U.S. government panel declared Grindr a "national security risk," the owners of Grindr have decided to sell the popular LGBTQ dating app, a report from Reuters says. Chinese gaming company Beijing Kunlun Tech Co Ltd. acquired a majority stake in the app in 2016 when it purchased 60% of shared for $93 million.
But now, it has decided to sell the app after the news from the Committee on Foreign Investment in the United States was released. Although the committee's exact concerns were unclear, American officials have been increasingly concerned about privacy and personal data in the hands of Chinese-owned companies, particularly if government personnel use the products or services.
Grindr was under fire last year for sharing users' HIV status without their permission. In the wake of Beijing Kunlun's decision to sell will likely bring a halt to Grindr's planned IPO, at least temporarily.
The Trump administration has been working hard to limit the involvement of Chinese businesses in American technology. The White House is planning to ban all telecommunication equipment manufactured or sold by Huawei Technologies Co. Ltd., but the Chinese company is taking legal action to block the move.