Weeks after the recent buyout of Media.net by a group of Chinese consortium, AppLovin- an app marketing company has been acquired by a Chinese private equity firm at a whooping $1.42 billion. A scene that portrays the big money guys have a mobile/ad tech fever.
The acquisition was confirmed on Monday after claims that the company is looking for a buyout at $1.5 billion.
As Elgin Thompson, managing director of Digital Capital Advisors, previously put it to AdExchanger: “These companies will pay the full price and, in some cases, an obscene price” in a bid to fuel digital and mobile growth at home and abroad.
The company is acquired by Orient Hontai Capital, a name hardly known in the West. Rajeev Goel, CEO of PubMatic said, “people in the West have a lot of work to do on educating ourselves on who these companies are and what they’re trying to do”
“AppLovin is the clear leader in mobile marketing automation and consistently delivers outstanding results for their customers,” said Orient Hontai CEO Tony Ma in a release on the deal. “As the mobile market grows, AppLovin is well-positioned to herald new innovations.”
In June 2015, AppLovin CEO and founder Adam Foroughi told AdExchanger that video had become a “well over $100 million business” for the company less than a year after launching it.
AppLovin’s focus and chief mantra….
- Product First Approach- We focus on our product before all else. Our platform enables brands to use real-time data signals to make effective marketing decisions over more than one billion mobile consumers worldwide.
- Innovation Is Key- We are always growing, iterating and becoming better. We believe in taking chances, coding quickly, breaking things, improving them and continuing to innovate at a rapid pace.
- A Great Team- We believe we are always better as a whole. We work as one team, achieving our goals across our worldwide wide team and ensuring that our culture is one of excellence, camaraderie and awesomeness.
Based in San Francisco, AppLovin was completely bootstrapped and other than $4 million from a few angels, never raised any VC funding (unlike most of its peers and competitors). Clients include HotelTonight, Pandora, SeatGeek, Ibotta and Chinese utility app publisher and mobile monetization platform Cheetah Mobile
The Orient Hontai deal is expected to close before the end of the year.
Beyond Media.net and now AppLovin, a group of Chinese companies bought Opera Software’s browser business for $600 million in July after a proposed $1.2 billion deal for the whole shebang, including Opera Mediaworks, fell through. In June, mobile SSP Smaato was snapped up by an offline marketing services provider based in Beijing for $148 million. And in February, Chinese mobile ad platform Mobvista acquired app monetization company NativeX for $25 million.