Kunlun Tech, 5/23/17
Beijing-based PC and mobile online game developer and operator Kunlun Technology (300418.SZ) has announced the company has wholly acquired Grindr Holding Company, the operator of US gay-oriented social networking app Grindr.
Kunlun Technology has invested USD 152 mln via its wholly-owned subsidiary Kunlun Group to acquire a 38.47% stake in Grindr Holding, and once the transaction is complete, Kunlun Technology will own a 100% stake in Grindr Holding. The purchase is to be completed within nine months of the signing of the stock purchase agreement.
In January 2016, Kunlun Technology spent USD 93 mln to purchase a 61.53% stake in Grindr, also through its Kunlun Group subsidiary. Settlement procedures on this stock purchase were completed in March 2016, with the Chinese Yuan equivalent of Kunlun's investment coming to RMB 601.82 mln. In April the purchase was included in the company's financial statement.
Grindr is a gay-oriented social networking platform with over 27 mln registered users in 196 countries. Over 30% of its user base is in the US, and daily average online time per user is over 50 minutes. 66% of Grindr's revenue comes from its members. Operating revenue for Grindr during the period from April 1, 2016 to December 31, 2016 was RMB 286.489 mln, with net profits of RMB 35.75 mln. In Q1 2017 operating revenue and net profits were RMB 102.775 mln and RMB 8.18 mln, respectively.
Editor's Note: For more information on this topic, please see "Kunlun Invests USD 93 Mln in American SNS App Grind," MD 1/11/16 issue.