REUTERS – Sep 8 – Match Group said the U.S. Department of Justice has closed its investigation relating to a lawsuit filed by the Federal Trade Commission on the dating apps owner's business practices. The FTC last September sued Match, alleging that it knowingly sent automated advertisements via Match.com with expressions of interest from accounts which it knew were likely fake to draw in potential subscribers.
Category: Outlets – Reuters
Parent Company of Blued Buys Lesbian Platform
REUTERS – Aug 26 – BlueCity, the owner of China's biggest gay men dating app Blued, has bought a Chinese lesbian dating app LESDO, marking the first ever deal within the country's LGBT market. Launched in 2014, LESDO is an app for lesbians. It is believed to be the second most popular lesbian social app in China after Rela. BlueCity raised $84.8M in a Nasdaq IPO in July that valued it at $614M.
by Colin Qian & Brenda Goh
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Chinese BlueCity Focused on Asia After IPO
REUTERS – July 9 – China's biggest gay dating app's owner BlueCity is focused on expanding in Asia, its founder said after it made its Nasdaq debut despite a U.S. securities regulator warning against investments in Chinese firms. BlueCity, which says its Blued app already has the largest market share in China, India, South Korea and Vietnam, raised $84.8M in an IPO which valued the Beijing-based company at $614M. Blued claims 49M registered users in 210 countries, and 6M monthly active users (MAUs), 49% of them outside China.
Grindr Cleared for Small-business Loan
REUTERS – July 7 – Grindr was approved for a $1M to $2M loan for small businesses suffering from the coronavirus outbreak. China's Beijing Kunlun Tech sold Grindr last month to an investor group called San Vicente Acquisition, after the U.S. government ordered the divestment amid concerns over the safety of personal data stored in the app. Grindr generated net profit of ~$31M in 2019, according to Kunlun's annual report.
Blued Gay Dating App Plans Nasdaq IPO
REUTERS – June 16 – BlueCity Holdings, owner of China's biggest dating app for gay men, aims to raise $50M from an IPO of American depositary shares (ADSs). The offer price for each ADS is yet to be finalised, and it will be traded on the Nasdaq global market under the symbol "BLCT". Founded in 2011, BlueCity says it has 49M registered users in ~210 countries. It added that it has 6M monthly active users, 49% of them from outside China.
by Colin Qian & Meg Shen
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CEO of ProSieben Dismisses Merger Speculation
REUTERS – June 10 – ProSiebenSat.1 Media's new CEO resisted calls for a European TV industry merger. Rainer Beaujean, hired in March to run the German broadcaster after predecessor Max Conze's pivot to digital commerce unravelled, is under pressure to deliver better growth and profits as investors led by Italy's Mediaset circle. Beaujean vowed to chart a course to returns on capital of ~15%, saying he had made the company "storm-proof" in the face of a 40% slump in ad revenues. "A trans-European merger would bring few synergies," Beaujean said. ProSieben was not in strategic talks either with Mediaset or Daniel Kretinsky's Czech Media Invest, both of which have amassed double-digit stakes. ProSieben plans to float its online dating business in 2022.
Winning Bidder for Grindr Has Ties to Chinese Owner
REUTERS – June 3 – An investor group San Vincente that got U.S. approval to buy Grindr has financial and personal links to the dating app's current owner, China's Beijing Kunlun Tech Co Ltd. The Committee on Foreign Investment in the United States (CFIUS) had cleared the sale of Grindr to San Vicente Acquisition for ~$600M. Grindr spokeswoman said: "The buyers for Grindr were selected after an extensive and unbiased bidding process that complied fully with all applicable regulations, as the receipt of all necessary approvals – including CFIUS – demonstrates." A regulatory filing shows San Vicente was incorporated on Feb. 19, just weeks before the deal with Kunlun. The company is named after the LA street where Grindr has its headquarters.
LGBT+ People Warned off Casual Sex
REUTERS – Mar 28 – According to Sensor Tower, Grindr downloads fell 19% in Spain and 8% in Italy. Gay app Scruff saw a drop of 7% and 10% week-on-week for Spain and Italy. But although the dating apps were down in terms of new users, operators reported higher usage by those on the site. Lesbian app HER had seen "a pretty heavy spike in usage". Over the weekend of March 14-15, HER reported its highest day of the year for "likes" on posts, with the overall number of likes rising by 16% over the weekend.
by Hugo Greenhalgh
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ProSieben Shares Rally After CEO Conze’s Departure
REUTERS – Mar 27 – Shares in ProSiebenSat.1 Media rallied by 9% on Friday after the departure of CEO Max Conze. ProSieben announced that Conze was leaving with immediate effect and CFO Rainer Beaujean would assume his responsibilities. Conze had sought to accelerate a pivot to digital commerce and advertising to offset a relentless decline in ProSieben's core commercial TV franchise, but while this preserved top-line growth it squeezed profitability and pushed up debt. The recent announcement of the $500M takeover of The Meet Group incurred the disapproval of Italian broadcaster Mediaset, which took advantage of a precipitous decline in ProSieben's share price to up its stake to 20%. Mediaset wanted ProSieben to change course and concentrate on its core media business. Analysts at Citi said it was possible that Mediaset could partner with Czech investor Daniel Kretinsky, who owns a 10% stake in ProSieben, to make a takeover bid.
Beijing Kunlun to Sell Grindr for $608.5M
REUTERS – Chinese gaming company Beijing Kunlun Tech has agreed to sell Grindr for ~$608.5M to San Vicente Acquisition. San Vincente Acquisition comprises a group of entrepreneurs and investors in the technology, media and telecommunications industries. One of the investors in the group is Chinese-born U.S. citizen James Lu, a former executive at Chinese search engine giant Baidu.
by Echo Wang & Chibuike Oguh
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