Adtech darling AppLovin is in talks to sell its gaming unit to Tripledot Studios in a $900 million deal, sources say

AppLovin is nearing a $900 million deal to sell its games unit to Tripledot Studios, a London-based mobile games developer. The deal, which includes $500 million in cash and $400 million in equity, is not yet finalized and could still change. AppLovin, traditionally known for its work with the gaming community, is shifting its focus to advertising, exiting the game development business. The company has seen significant stock growth, driven by a move to attract e-commerce advertisers, despite a slight decline in app revenue.

Tripledot Studios, valued at $1.4 billion, specializes in popular mobile games and is backed by investors like 20VC and Lightspeed Ventures. AppLovin's CEO, Adam Foroughi, emphasized that the company has never been a game developer at heart, and the sale aligns with its strategic focus on advertising. Meanwhile, AppLovin is dealing with negative attention from short-seller reports, which it claims are inaccurate and aimed at driving down its stock price. Despite this, hedge funds have shown interest in the company, with AppLovin becoming a popular stock among them.

Key takeaways

AppLovin plans to sell its games unit to Tripledot Studios in a $900 million deal.
AppLovin's recent stock surge is due to its focus on e-commerce advertisers, moving away from game development.
Tripledot Studios, valued at $1.4 billion, specializes in popular mobile games.
AppLovin is facing scrutiny from short-sellers, accusing it of exaggerating AI model performance.

Adtech darling AppLovin is in talks to sell its gaming unit to Tripledot Studios in a $900 million deal, sources say

Key takeaways

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