Beijing, March 7: One of China's biggest mobile gaming companies is selling popular gay dating app Grindr for $608 million after pressure from US authorities concerned over the potential misuse of user data.

National security officials in Washington fear the platform -- which bills itself as the world's largest social networking space for LGBT people -- could be used by the Chinese government to blackmail Americans with government security clearances, according to media reports last year. Grindr App Scam: Police Bust Gang Who Duped 50 Senior Executives of MNCs in Gurugram on Gay-Dating App.

Beijing Kunlun Tech took a majority stake in the app in 2016 and bought the remaining equity two years later for a combined $245 million, but was reportedly ordered to relinquish the platform by US officials last year.

It will sell a 98.59 percent stake in Grindr to San Vicente Acquisition, a holding company based in the US state of Delaware, according to a company filing with the Shenzhen Stock Exchange on Friday.

The deal is awaiting approval from a US committee authorised to review transactions involving foreign investments, the filing said. Grindr has faced other accusations of improperly managing the data under Beijing Kunlun's ownership. Looking for Dating App to Have a Partner Older or Younger to You? Couple With 23 Years Age Gap to Launch ‘Iagegap’.

The platform violated European Union privacy regulations by sharing the GPS data, age and gender of its users with third-party companies to help target advertisements, according to a report by a Norwegian consumer rights group.

(The above story first appeared on LatestLY on Mar 07, 2020 04:44 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).