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PALO ALTO, CA – AppLovin Corp (NASDAQ:APP), a prominent player in the mobile gaming and app technology sector, has announced a significant business move. On Monday, the company disclosed that its Chief Marketing Officer, Katie Jansen, will be stepping down from her role effective March 14, 2025. The company stated that Jansen’s resignation is not due to any disagreement with the company’s operations, policies, or procedures. The announcement comes as AppLovin continues to demonstrate strong financial performance, with revenue growing 41.48% over the last twelve months and maintaining a healthy current ratio of 2.41.
In a separate development today, AppLovin revealed that it has agreed to a term sheet for selling its mobile gaming division to an undisclosed private entity. The deal is valued at $900 million, comprising $400 million in the acquirer’s common equity and $500 million in cash, subject to standard adjustments. Additionally, the agreement includes a clause allowing the acquirer to secure up to $250 million in financing for the cash portion of the deal. If the acquirer fails to obtain this financing, AppLovin has agreed to provide a promissory note for the same amount. According to InvestingPro data, AppLovin’s market capitalization stands at $126.9 billion, with the stock delivering an impressive 697.39% return over the past year.
The term sheet stipulates that both parties will make their best efforts in good faith to negotiate and finalize the definitive agreements for the transaction. It also includes a period during which AppLovin is not permitted to engage in sale discussions or negotiations with any third parties other than the acquirer for its mobile gaming business.
This strategic move comes as part of AppLovin’s restructuring efforts and is expected to have a significant impact on the company’s future operations. The term sheet is non-binding, except for certain provisions, and the finalization of the deal is subject to the negotiation of definitive agreements.
Investors should note that forward-looking statements regarding the proposed sale involve risks and uncertainties, and there is no guarantee that the transaction will be completed as described. The information is based on a press release statement and reflects the company’s position as of the date of the report. The company has not provided any further details on the potential impact of these changes on its financial performance or market strategy. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading above its estimated Fair Value, suggesting investors should carefully consider their entry points.
In other recent news, AppLovin Corp has been garnering significant attention from various analyst firms. Oppenheimer maintains an Outperform rating on AppLovin with a price target of $480, anticipating the company’s fourth-quarter 2024 results could surpass consensus expectations. The firm is particularly interested in AppLovin’s e-commerce contribution, predicted to be between $30 million and $50 million for the quarter.
Benchmark initiated coverage of AppLovin with a Buy rating and a price target of $375, highlighting the potential of its AXON AI technology. They foresee this technology fueling significant growth in the company’s core mobile gaming advertising business.
Bank of America reaffirmed AppLovin as a top pick for 2025, citing the company’s software growth, business performance, and potential in e-commerce opportunities. Meanwhile, short-seller Captain’s Log criticized AppLovin’s business practices, suggesting its growth story is largely due to related party transactions and circular revenue.
Lastly, Jefferies reaffirmed a Buy rating on AppLovin with a price target of $425, citing the potential of AppLovin’s e-commerce initiatives. They anticipate that the company will significantly exceed the Street’s current e-commerce revenue projections for 2025. These recent developments reflect a variety of perspectives on AppLovin’s business strategy and future prospects.
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