AppLovin has hired Morgan Stanley to lead preparations for an IPO to come in early 2021. The gaming studio creates and develops mobile games and its technology “enables developers to monetize their games and acquire more users,” according to Applovin.com.
What is AppLovin?
AppLovin is a mobile app and gaming platform that's backed by private equity firm KKR. In 2018, KKR acquired a minority stake in AppLovin for $400 million and valued the company at $2 billion, as reported by Nasdaq. Sources informed Reuters that the company has hired investment bank Morgan Stanley to prepare its impending IPO.
AppLovin was founded in 2012 as a mobile game advertising platform. Eventually, the company branched into game development. A source familiar with the company said that it projects revenues of approximately $1.5 billion for 2020.
Ted Oberwager is a managing director in KKR’s technology, media, and telecommunications team. In an interview with CNBC, he said, “Today gaming is a fractured, fragmented market. I think the market will consolidate, and I think AppLovin will be one of those consolidators.”
In 2018, AppLovin also created Lion Studios, which is a media division that collaborates with game developers to improve their promotion and publication of apps. The company has invested in other companies including Machine Zone, Belka Games, PeopleFun, and Firecraft Studios.
When is AppLovin going public?
AppLovin is the most recent video gaming company to seek an IPO. During the COVID-19 pandemic, video game popularity and sales surged because more people stayed home, according to CNBC. The company has considered going public for years, but it hasn't taken solid steps yet.
In May 2019, Fortune reported that AppLovin aimed to raise $1 billion for a 2020 IPO. Now, the company looks to move forward with an IPO in 2021.
Research from the NPD Group reported record video game sales for the second quarter of 2020. The total consumer spending on video gaming was $11.6 billion from April to June, which was 30 percent higher than the same period in 2019. The amount also represented a 7 percent increase from the first quarter of 2020.
Roblox is another top gaming company that's preparing for a 2021 IPO. Reuters reported that the company may go with a direct listing or an IPO. Roblox expects to double its recent valuation of $4 billion.
What is AppLovin's stock IPO price?
AppLovin was given a $2 billion valuation when KKR acquired its minority stake in 2018. Sources expect the company to get a much higher valuation.
AppLovin's ticker symbol
AppLovin's ticker symbol and specific IPO date haven't been revealed yet.