AppLovin, the mobile marketing platform, has just sold a majority interest in the company to Orient Hontai Capital, a private equity investment firm, valued at $1.4bn. The firm previously received just little funding of $4m from angel investors and was profitable within a month of its launch.
AppLovin gets acquired by Chinese investment firm
First launched in 2011 by Adam Foroughi, Andrew Karam and John Krystynak, the business more than doubled every year, generating $234m in revenue in 2015. There are expectations that results may even double for 2016 as advertisers now spend almost half a billion dollars in 2016 on the AppLovin platform.
The company has previously been interested in branching out into the Chinese market. Adam Foroughi, CEO and CoFounder, AppLovin, explains:
“Today is a great day for AppLovin. This level of investment validates the outstanding product we’ve built. What’s more, is the profound significance for the entire advertising industry given this is the most sizeable outcome for a mobile advertising company ever. We’ve seen a high volume of interest in our business, and we ultimately chose to partner with Orient Hontai because of their strong connections in the Chinese market. Our goals are perfectly aligned, and we share a commitment to scale globally and to continue the highest standards of operation. The AppLovin team is excited to begin this next phase and expand reach into new geographic regions.”
AppLovin will continue to operate as normal from its headquarters in California. It currently has a team of around 100 members of staff.
The transaction is still subject to regulatory approval, but is expected to close in the fourth quarter of 2016.
We’ve asked industry experts what they think about the acquisition. Here are some of their answers:
Andrew Degenholtz, President, Oplytic, says:
“The Applovin acquisition demonstrates the importance of focusing on performance marketing for mobile. Results matter and advertisers need to measure return on investment. Smart data modeling, retargetting and re-engagement of mobile web and mobile app users is a key component of every marketers mobile plan.”
Jim Harvey, EVP, Advertising, Digital Turbine:
“Huge validation that if you stay focused on delivering solid solutions and results for app developers and their businesses, great things will happen. Nice work AppLovin team!”
Ryan Gray, CEO, RevMax, adds:
“This is huge for the entire mobile industry! This acquisition just proves how fast mobile is growing and the extreme demand for high quality app installs. Hats off to Adam and his entire team for their impressive bootstrapped growth!”