The United States is pushing the Chinese owner of Grindr to divest itself of the application of meetings: Sources



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Grindr has retained the investment bank Cowen to manage the sales process and is seeking acquisition interests from US investment firms and its competitors, according to the same sources.

This development represents a rare and prestigious example of CFIUS canceling an acquisition already completed. Kunlun took over Grindr under two separate agreements between 2016 and 2018 without presenting the acquisition for examination of the CFIUS, according to sources, making it vulnerable to such intervention.

The sources asked not to be identified because the case is confidential.

Kunlun representatives did not respond to requests for comment. Grindr and Cowen declined to comment. A spokesman for the US Treasury Department, who chairs the CFIUS, said the panel did not comment publicly on individual cases.

Grindr, which describes itself as the world's largest social networking application for gay, bisexual, transgender and queer people, had 27 million users in 2017. The company collects personal information submitted by its users , including the location, messages and even the status of someone's HIV status, in accordance with its privacy policy.

CFIUS's intervention in Grindr's case highlights its interest in personal data security after blocking acquisitions of US money transfer company MoneyGram International and mobile marketing company AppLovin by Chinese bidders last two years.

CFIUS does not always reveal the reasons why it chooses to block an agreement with the companies involved, which could potentially reveal classified findings of US agencies, said Jason Waite, a partner at law firm Alston & Bird LLP, who focuses on the regulatory aspects of international relations. trade and investment.

"Personal data has become a major concern for CFIUS," Waite said.

The outcome of the Grindr agreement also highlights the pitfalls faced by Chinese acquirers of US companies seeking to bypass the CFIUS revision system, which relies primarily on voluntary bids.

Among the previous examples of the United States having ordered the assignment of a company after the purchaser had not yet requested the CFIUS review, let us mention the acquisition by China National Aero-Technology Import and Export of Seattle-based manufacturer of aircraft components Mamco in 1990, the sale by Ralls Corp in 2012, and the sale by Ironshore of Wright & Co., provider of professional liability coverage to employees from the US government, such as members of law enforcement and national security officials, to Starr Cos. in 2016.

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