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?
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.
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.