AppLovin Offloads Games: $500M Cash, $400M in Stock
Yes, it’s still a hot topic. After what?
- AppLovin Monopoly in Mobile Gaming?
- AppLovin Scandal: New Target of Short Sellers?
- AppLovin to Sell Its Gaming Division for $900M
AppLovin’s $900M Games Sale: Mystery Buyer, Big Moves & Strategic Shifts
Ad Tech Titan AppLovin is offloading its gaming division in a $900 million deal—$500M in cash, $400M in equity—to a still-undisclosed buyer. The acquirer has signed a non-binding term sheet and plans to borrow up to $250M to fund the purchase. If financing falls through, AppLovin will step in with a promissory note.
The February 12, 2025 agreement comes with a catch: AppLovin can’t negotiate with other buyers for now. While speculation swirls, one major contender is Savvy Games Group, while public giants like Playtika and Tencent are ruled out.
Why the Sale?
Despite strong gaming revenue, $1.5B in 2024, up 3% YoY—AppLovin sees itself as an ad tech powerhouse, not a game developer. CEO Adam Foroughi put it bluntly: “We’ve never been a game developer at heart.” With ad revenue soaring 75% to $3.2B, the company is doubling down on its strengths.
What’s Next?
Beyond this sale, AppLovin is open to future M&A, eyeing deals that accelerate growth. With a reputation for savvy acquisitions and strategic partnerships, the company’s next move could reshape the industry yet again.
Source: PocketGamer
