The main Chinese stakeholder of the gay dating app Grindr has to pay over 1 billion dollars as a divorce settlement. The billionaire, Zhou Yahui, was ordered to pay his wife Li Qiang 278 million shares in his online gaming company – Beijing Kunlun Tech. The market value of the shares is about 1.1 billion dollars.
In China, the laws of divorce stipulate that whatever the spouses accumulate after they get married is treated as the property of both and it has to be split into equal shares – according to Fang Xiaofeng, a partner at Gao Ming law firm in Shanghai.
The divorce rate in China used to be relatively small but has skyrocketed in recent years. It rose by 1.7 percent of the population yearly, from 2008 to 2015 and since 2015 it rose by 2.8 percent of the population – according to Civil Affairs.
The settlement of Mr. Zhou is still smaller than what Wu Yajun, a chairwoman, and property developer paid to her husband, following their divorce in 2012. Consequently, she lost her title of the richest woman in China.
Kunlun Tech has paid 155 million dollars to buy a 60 percent share in Grindr. Mr. Zhou wants to use the platform to drive traffic for his gaming company. The company also put 22 million pounds in the UK peer-to-peer bank LendInvest.
Following the divorce settlement, Mr. Zhou’s former wife’s stake will go from 1.8 percent to 26.4 percent. Mr. Zhou will still be the chairman of the company and the largest stakeholder, with a 34.5 percent share.
Zhou and Li are both younger than 40. They first laid eyes on each other in elementary school and have been long term friends. After they got married, they moved to the United States.
Currently, the reasons for the divorce are not known.
Since 2011 through to 2014, the divorce rate in China has risen to 27 percent.
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