AppLovin completes sale of mobile gaming subsidiaries for $400 million and equity stake

Published 01/07/2025, 13:18
AppLovin completes sale of mobile gaming subsidiaries for $400 million and equity stake

AppLovin Corporation (NASDAQ:APP), a technology company with impressive gross profit margins of nearly 78% and annual revenue exceeding $5.1 billion, announced Monday that it has completed the sale of certain wholly owned subsidiaries engaged in its mobile gaming business to Tripledot Group Holdings Limited and its affiliates. The transaction closed on June 30, 2025.

According to a statement in a U.S. Securities and Exchange Commission filing, the consideration for the sale included $400 million in cash, subject to closing adjustments, as well as ordinary shares of Tripledot representing approximately 20% of Tripledot’s fully diluted equity capitalization at the time of closing. No promissory note was issued as part of the purchase consideration.

The agreement was amended on June 30 to allow Tripledot to pay the cash portion directly, rather than through a secured promissory note, at its election. The transaction involved AppLovin and its subsidiaries Morocco, Inc. and AppLovin GmbH as sellers, and Tripledot, Eton Games, Inc., and Tripledot Group Holdings Limited as purchasers.

AppLovin is incorporated in Delaware and is headquartered in Palo Alto, California. The company’s Class A common stock is listed on the Nasdaq Stock Market under the symbol APP.

This report is based on a statement in an SEC filing.

In other recent news, AppLovin Corp has seen several analyst firms adjust their price targets and ratings based on various strategic developments. Piper Sandler raised its price target to $470, maintaining an Overweight rating, citing strong supply growth despite mixed supply-side metrics. They noted a decrease in new SDK additions, attributing it to gains by AdMob. Morgan Stanley (NYSE:MS) also increased its price target to $460, expressing optimism about AppLovin’s plan to sell its apps segment, which they believe will enhance shareholder value without impacting future earnings. Oppenheimer reaffirmed an Outperform rating with a $500 price target after meetings with AppLovin’s executives, highlighting confidence in the company’s growth outlook and market share. Meanwhile, Jefferies maintained a Buy rating and set a price target of $530, with plans to discuss AppLovin’s advertising performance compared to Meta (NASDAQ:META) and Google (NASDAQ:GOOGL) in an upcoming expert call. These recent developments reflect a positive sentiment among analysts regarding AppLovin’s strategic moves and future prospects.

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