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AppLovin Sells Gaming Division, Boosts Advertising Focus with 40% Revenue Growth

Market IntelWednesday, May 7, 2025 8:06 pm ET

1min read

AppLovin, a marketing technology company headquartered in California, has announced the sale of its mobile gaming division to Tripledot Studios, a company based in London. This strategic decision is aimed at enabling AppLovin to focus more intently on its core advertising technology business. The transaction is anticipated to be finalized in the second quarter of this year.

The company released its first-quarter financial results, which surpassed market expectations. AppLovin's revenue for the quarter amounted to $14.8 billion, marking a 40% year-over-year increase. The adjusted earnings per share were $1.67, also exceeding market forecasts. The company's advertising revenue for the quarter was $11.6 billion, a 71% increase from the previous year, underscoring the robustness of its advertising business.

AppLovin's CEO, Adam Foroughi, had previously indicated that the company was never a game developer and had been in exclusive negotiations to sell its mobile gaming division to a private entity. Tripledot Studios, established in 2017, has developed popular mobile games such as Woodoku and Solitaire. The company secured $116 million in funding in 2022, with a valuation of $1.4 billion.

As part of the agreement, AppLovin will receive $400 million in cash and a 20% stake in Tripledot Studios. This transaction is expected to bolster AppLovin's financial position and enable it to invest more in its advertising technology platform. The company has also provided strong guidance for the second quarter, with projected advertising revenue ranging from $11.95 billion to $12.15 billion and adjusted EBITDA from $9.7 billion to $9.9 billion.

The sale of the mobile gaming division represents a significant move for AppLovin, as it allows the company to concentrate on its core competencies in advertising technology. By divesting its gaming assets, AppLovin can better allocate resources to innovate and expand its advertising solutions, which have demonstrated strong growth in recent quarters. This strategic shift is likely to enhance the company's competitive advantage in the rapidly evolving digital advertising landscape.

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