- Applovin plans to sell its games unit at Tripledot Studios in a $ 900 million agreement, sources say.
- Tripledot Studios, worth $ 1.4 billion, specializing in popular mobile games.
- Applovin refused to comment, while Tripledot did not respond to Bi’s requests for comment.
Adtech APLOVIN company is close to a $ 900m deal to sell its Tripledot Studios game unit, a London -based mobile player, four people with the issue told Business Insider.
People demanded anonymity to maintain their business relationships; Their identity is known for Business Insider. They said the deal has not yet been completed, and plans can still change.
Applovin refused to comment. Tripledot Studios did not respond to requests for comment.
Applovin, which helps app developers make money through advertising and find new users through advertising, has been the largest company in Adtech in recent months. Applovin’s shares have been in tears and increased more than 400% over the past year, with its market value reaching $ 100 billion.
While Applovin was traditionally known to work with the gaming community, his latest shares was prompted by a new move in the court’s e -commerce advertisers.
Now he wants to focus simply on advertising and out of the playing business. Applovin’s game studios include Lion Studios, Machine Zone and Magic Tavern, which create more than 200 free mobile games to play as “Popsicle Stack”, “Makeover Project”, “Game of War: Fire Age” and “Strike Mobile”.
While the overall revenue of the fourth quarter of Applovin increased 44% from year to year near nearly $ 1.4 billion, its income in the app remained-down 1% to just over $ 376 million.
Applovin said he has never been a heart game developer
In an appearance for the latest update of the quarterly profits of Applovin in February, she said she had reached a “exclusive term of the deadline” With a private company undiscovered to load the studio of its games in a deal expected to close until the second quarter.
Applovin said at the time the deal consisted of $ 500 million in cash and $ 400 million in capital, although it was still “subject to customary purchase price adjustments”.
The buyer was looking to borrow up to $ 250 million to finance the deal, Applovin said in a submission. The company also said that if the buyer could not find the funds, Applovin would lend the required money to ensure that the deal goes ahead.
The Director General of APPLOVIN, Adam Foroughi, said while calling for profits in February that while the company had won some game studios over the years to help train its machinery learning model, “we have never been a heart game developer.”
“I want to point out our teams, you will soon be part of a company that specializes and developing champions,” Forouughi said.
Tripledot studios fits this description. Established in the UK in 2017, the company is specialized in simple, popular mobile games such as “Solitaire”, “Woodoku” and “Blackjack”.
Techcrunch reported that a round of $ 116 million Serie B funding in 2022 rated triple to $ 1.4 billion. Its investors include 20VC, Raine Group, Eldridge Industries and LightSpeed Ventures.
Applovin is removing short sellers
The status market status of Applovin has also implied that the company has attracted negative attention in recent weeks.
Two special reports with short sellers published at the end of last month sent her shares by crashing after they accused the company of exaggerating its models.
In a blog post, forouughi said the reports were “filled with inaccuracies and false assertions” and aimed at running its shares for the financial benefit of short sellers.
Great -name defensive funds such as Viking Global, D1 Capital and Castlehook have been accumulated in late Applovin. A main broker told BI earlier this year that Applovin had become the latest hotel of the defense fund, a term describing shares with a disproportionate amount of ownership of the defense fund compared to the general market.