AppLovin scraps acquisition and takes debt financing instead


The tale of AppLovin‘s acquisition has taken every other flip.

We first reported that the cellular advert startup was once in acquisition talks in August of closing yr, and the announcement got here a month later: AppLovin would promote a majority stake Chinese language personal fairness company Orient Hontai Capital.

These days, alternatively, CEO Adam Foroughi printed that the deal is (form of) off. In place of an outright acquisition, the company will supply AppLovin with $841 million in debt financing — that’s on best of the nine.98 % stake that Orient Hontai already received in January, because of a $140 million fairness funding.

SEE ALSO:  Cloudflare expands into mobile performance with Neumob acquisition

“This debt financing allows us to maintain full control of our business while accessing additional capital to help finance our continued global growth,” Foroughi wrote. “Our goal remains enabling developers of all sizes to grow their businesses.”

SEE ALSO:  Xiaomi beats Samsung to top spot in India’s smartphone market

Reuters experiences that the U.S. executive adversarial the deal. It seems that this is a part of a bigger pattern, with the Committee on Overseas Funding in america changing into extra reluctant to approve Chinese language offers for the reason that inauguration of Donald Trump.

Featured Symbol: AppLovin