Run by billionaire Zhou Yahui, Beijing Kunlun is one of China’s largest game developers. The purchase of Grindr, which has more than 3 million daily users, will put it in a more strategic position internationally.
‘Sex sells’ has always been a marketing mantra, I find humor seeing that hold true in technology. I also find humor that a game developer is buying an online hookup app, as if dating wasn’t enough of a game already swiping, taping, hearting, liking seemingly endless digital profiles.
What’s curious to me is the 2.6x Cost per percentage point growth between the early 2016 and present day acquisition of Beijing Kunlun’s purchase.
In January 2016 Beijing Kunlun Tech acquired 61.5% of the gay social-network app for $93 million. It’s now announced plans to purchase the remaining 38.5% stake in Grindr LLC for $152 million, according to Reuters.
This leads me to wonder, what strategy does Beijing Kunlun have here? How would Grindr’s user base react knowing their intimate data is being shared with a Chinese corporation. China doesn’t exactly have a great track record with LGTBQ rights.
Update: a bit more commentary on intent from a South China Morning Post article:
A little-known Chinese tech company has agreed to pay US$240 million for America’s Grindr so that it can become fully involved in the daily operations of the world’s largest gay social media app, as it expands and builds a loyal user base beyond China.
“[With the deal,] we also aim to be a world leading social media company in the future, and to expand our platforms into film, streaming and animation,” it said.