According to Business Insider sources, AppLovin plans to sell its games unit to Tripledot Studios, a mobile gaming company valued at $1.4 billion.
AppLovin has declined to comment, while Tripledot did not respond to Business Insider’s request for comment.
The news comes from four people with knowledge of the matter, who spoke with Business Insider. They said the deal isn’t yet finalized, and the plans could still change.
AppLovin’s recent pivot from game development
This strategic move aligns with AppLovin’s recent pivot from game development to focusing exclusively on its advertising technology services. The company has experienced substantial growth, with its stock price increasing over 400% in the past year, elevating its market valuation to over $100 billion.
AppLovin owns several mobile gaming studios, including:
- Lion Studios
- Machine Zone
- Magic Tavern
These studios have collectively produced over 200 free-to-play mobile games, including popular titles such as:
- Mobile Strike
- Popsicle Stack
- Project Makeover
- Game of War: Fire Age
Tripledot Studios: A Rising Force in Mobile Gaming
Founded in 2017 and headquartered in London, Tripledot Studios has rapidly ascended in the mobile gaming arena, specializing in accessible and popular games such as “Solitaire,” “Woodoku,” and “Blackjack.”
The company secured a $116 million Series B funding round in 2022, which valued it at $1.4 billion, attracting investors like 20VC, The Raine Group, Eldridge Industries, and Lightspeed Ventures.
AppLovin’s Response to Short-Seller Allegations
AppLovin has been navigating challenges posed by short-seller reports from firms such as Culper Research and Fuzzy Panda Research. These reports accuse the company of overstating the capabilities of its AI-powered advertising platform and engaging in questionable business practices.
In response, CEO Adam Foroughi has refuted these allegations, labeling them as false and misleading, and emphasizing the company’s commitment to ethical operations.
AppLovin’s anticipated sale of its gaming unit to Tripledot Studios represents a pivotal move in its strategic realignment towards adtech services. As the company addresses external challenges and refines its business focus, stakeholders will be closely monitoring the outcomes of these developments and their implications for the broader mobile gaming and advertising industries
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