By CultureBanx Team
- Grindr agreed to go public through a SPAC in a deal that values the combined company at $2.1B including debt
- The dating app collects a wide range of personal data including HIV status with one of the most exposed groups likely being Black gay and bisexual men who account for the largest number of HIV diagnoses
Grindr, the popular gay dating app with more than 27 million users worldwide has agreed to go public through a SPAC in a deal that values the combined company at $2.1 billion including debt. The predominantly male dating app is merging with Tiga Acquisition and will need to explain why precise movements of millions of users were collected from a digital advertising network and made available for sale, according to the Wall Street Journal.
Why This Matters: With more than 11 million monthly active users, Grindr keeps a lot of social data on them. The hookup app’s privacy policy notes they collect a wide range of personal data including location information, messages, and even HIV status if users choose to provide it. One of the most exposed groups is likely Black gay and bisexual men, because in 2019 they accounted for the largest number of HIV diagnoses at 9,807, followed by Hispanic with 7,436 and whites at 6,982, according to the Centers for Disease Control and Prevention.
The business combination will provide Grindr with an estimated $384 million, which the company will use to pay down debt and strengthen its balance sheet, according to Bloomberg. Grindr, a 13-year old company, has had several owners over the years. Chinese firm Beijing Kunlun Tech Co. sold the company to San Vicente Acquisition Partners LLC for $600 million in 2020, after U.S. regulators urged a divestiture over national securities concerns.
What’s Next: Revenue excluding certain items grew to $147 million in 2021, according to the company. For 2022, forecasting adjusted revenue growth of 35% to 40% over 2021. Pending any regularity hold ups, Grindr’s SPAC deal is expected to close by the end of the year.
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