AppLovin in talks to sell games studio to Tripledot: sources

AppLovin is in discussions to sell its gaming unit to Tripledot Studios for $900 million, according to sources familiar with the matter. The deal, which is not yet finalized, would consist of $500 million in cash and $400 million in equity. AppLovin, known for helping app developers monetize through advertising, is shifting its focus away from game development to concentrate on advertising. The company has seen a significant increase in its stock value, driven by its recent pivot towards e-commerce advertisers. AppLovin's game studios, including Lion Studios and Machine Zone, have produced over 200 mobile games, but the company has stated it was "never a game developer at heart."

Tripledot Studios, a London-based mobile-games developer valued at $1.4 billion in 2022, specializes in simple, popular mobile games. The potential acquisition aligns with AppLovin's strategy to exit game development. Meanwhile, AppLovin has faced scrutiny from short-sellers, with reports accusing the company of overstating its AI model performance, causing stock volatility. Despite this, hedge funds like Viking Global and D1 Capital have shown increased interest in AppLovin, indicating its strong market presence.

Key takeaways

AppLovin is in talks to sell its gaming unit to Tripledot Studios in a $900 million deal.
AppLovin plans to focus purely on advertising and exit the game-development business.
Tripledot Studios, valued at $1.4 billion in 2022, specializes in popular mobile games.
AppLovin's stock has been volatile, with recent short-seller reports impacting its market performance.

AppLovin in talks to sell games studio to Tripledot: sources

Key takeaways

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