$900M Deal: Tripledot Buys AppLovin’s Games
As reported by BusinessInsider, AppLovin, the Adtech Titan, is selling its gaming unit to London-based Tripledot Studios in a $900 million deal, sources tell Business Insider.
AppLovin’s CEO Adam Foroughi made it clear: “We’ve never been a game developer at heart.” The company originally acquired studios like Lion Studios, Machine Zone, and Magic Tavern to train its ad-driven AI, but now it’s fully embracing its role as an advertising titan.
- On February 12, AppLovin CEO Adam Foroughi told investors during an earnings call that the company has signed an “exclusive term sheet” to sell all of its apps business.
- “Seven years ago, we began acquiring gaming studios to help train our earliest ML models, an invaluable step in shaping the AI that underpins our AXON platform,” he said.”
From the last week: AppLovin Offloads Games: $500M Cash, $400M in Stock
AppLovin paid $600M just for Machine Zone & Peoplefun.
Not even talking about Lion Studios, ZenLife, Magic Tavern, Belka Games, Clipwire, Athena Studio, and Leyi Games.
- AppLovin acquired Machine Zone for $500M in 2020.
- PeopleFun acquisition for approximately $100M in 2018.
Since 2018, AppLovin has spent over $2 billion on 16 acquisitions. Half of that was on Adjust, but most of the acquired companies were gaming studios like Machine Zone, ZenLife, and more. Not every deal likely created value, but as a whole, it strengthened AppLovin as an ecosystem, and inorganic/acquisitive growth became a major driver. Here are the Subsidiaries of AppLovin.
Tripledot, valued at $1.4 billion, specializes in addictive hits like Solitaire & Woodoku. The deal—$500M in cash, $400M in equity—is expected to close by Q2, pending final agreements. If funding falls short, AppLovin will step in to finance the sale itself.
$1.4B valued Studio acquiring a $900M Portfolio?
Let’s break it down real quick. Tripledot is valued at $1.4B, sitting on $500M cash, and planning its first acquisitions in Q2.
If its EBITDA/EV ratio is 35%, does that mean Tripledot is undervalued? Or are we missing something? How come with $500M in cash end up with a $1.4B valuation?
Let’s take a look at Tripledot’s Last-2 Year Data.
Mostly Ad-Driven here. Maybe 80% IAA, more or less.
How about their UA Strategy?
AppLovin is also a Gaming Giant.
AppLovin’s market cap is just $106,5 billion. 🦄
Seen their 2024 Financials?
Their Studios?
Pretty big over there.
How’s it going, AppLovin?
AppLovin is currently battling short sellers who claim it’s overstating AI performance. Despite the turbulence, hedge funds Viking Global, D1 Capital, and Castlehook are betting big, making AppLovin one of the hottest stocks on Wall Street.
With this deal, Tripledot expands its gaming empire, and AppLovin sharpens its focus on ad dominance. The game is changing—literally.
Tripledot’s Transition From Solitaire & Puzzle to Casino
Tripledot is going from a casual puzzle studio to a major casino player overnight.
Before: Known for Puzzle & Solitaire (IAA-heavy, casual UA).
After: Now managing big-spending casino titles (IAP-driven, VIP-focused).
MASSIVE operational shift here, one of the most complex transitions in gaming history.
🚨 One wrong move and Tripledot could collapse under the weight of this acquisition.
🦄 One right move, Major Casino & Casual Gaming Powerhouse.
Possible scenarios? Tell me, ChatGPT.
ChatGPT had an interesting take. Though, it’s not that unusual.
Tripledot just wants to diversify, especially grabbing some IAP dollars, and they got this portfolio at a steep discount. It’s worth a higher multiple under them than they paid.
Industry’s Take?
More?
