China News Service, March 6th. Today, Beijing Kunlun Wanwei Technology Co., Ltd. (hereinafter referred to as Kunlun Wanwei, stock code 300418.SZ) disclosed an announcement that the 70th meeting of the company’s third board of directors reviewed and approved the “Regarding the Transfer”. The 98.59% stake in Grindr held by Kunlun Group will be transferred to the U.S. company San Vicente Acquisition LLC (hereinafter referred to as “San Vicente Acquisition LLC”) at a consideration of approximately RMB 4.215 billion (USD 608.5 million). San Vicente).
Grindr is a gay dating mobile app.
According to the announcement, Kunlun Wanwei’s transaction is expected to generate investment income of about 3.164 billion yuan, which can generate considerable cash backflow, which is conducive to enriching the company’s cash reserves.
Kunlun Wanwei said that the proceeds from the equity transfer will be used to supplement working capital and business investment in the company’s new strategy.
Kunlun Wanwei first invested in Grindr on January 8, 2016. At that time, Kunlun Wanwei purchased shares held by Grindr shareholder Grindr Holding Company with the wholly-owned subsidiary Kunlun Group as the main investment, with an investment amount of 93 million US dollars.
After the acquisition in 2016, Kunlun Group held a 61.53% stake in Grindr. In April 2016, Kunlun Wanwei included Grindr in the consolidation scope of the company’s financial statements.
On May 22, 2017, Kunlun Wanwei once again decided to use Kunlun Group as the main body to invest US$152 million to acquire the 38.47% stake in Grindr held by Grindr Holding Company. After the acquisition, Kunlun Group holds all the shares of Grindr.
On March 6, 2020, Kunlun Wanwei announced that the company signed an equity transfer agreement with San Vicente, and planned to transfer 98.59% of the equity of Grindr Inc. held by Kunlun Group (Grindr Inc. holds 100% equity of Grindr LLC), Transferred to San Vicente at a consideration of approximately RMB 4.215 billion.
It can be seen that the acquisition of Grindr is a successful practice of Kunlun Wanwei in the Internet social platform. Through the rich practical experience accumulated in the process of operating Grindr, it will become a valuable asset to help Kunlun Wanwei build a world-leading Internet content platform company.
Kunlun Wanwei said that the considerable cash flow after the sale of Grindr will provide strong financial support for the continuous growth of the existing business and create greater value for shareholders, which is in line with the company’s long-term development plan and the interests of all shareholders and the company.