A little-known Chinese tech company has agreed to pay US$240 million for America’s Grindr so that it can become fully involved in the daily operations of the world’s largest gay social media app, as it expands and builds a loyal user base beyond China.

Beijing Kunlun Tech, a game developer owned by 38-year-old billionaire Zhou Yahui, said on Wednesday it planned to pay US$152 million to buy the remaining 38 per cent stake in Grindr that it does not already own. Kunlun paid about US$88 million for a 62 per cent stake of the social media app in January last year, which meant that the startup’s valuation has gained 161 per cent since the Chinese firm’s last purchase.

“It is of strategic importance for us to fully engage in the daily operations of Grindr and make it our development milestone,” Kunlun said in a statement.

“[With the deal,] we also aim to be a world leading social media company in the future, and to expand our platforms into film, streaming and animation,” it said. Read more via South China Morning Post