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Tripledot Studios acquires AppLovin's mobile games business

As part of its Q1 financial results, AppLovin confirmed its plans to sell its games business, which had already been announced in February, and named British company Tripledot Studios as the buyer.

Mobile entertainment company AppLovin is divesting its games division, according to its Q1 quarterly report. The possibility of a sale has been known since February. At that time, media outlets picked up on a mandatory disclosure by App Lovin to the US Securities and Exchange Commission (SEC) informing of a memorandum of understanding regarding the sale of its mobile games activities.

As stated in the quarterly report, a definitive purchase agreement was signed on 7 May. The buyer is the British company Tripledot Studio, together with its subsidiary Eton Games. The price agreed was $400 million in cash and approximately 20 per cent of all shares in Tripledot Studio's holding company.

The news of the sale was accompanied by good quarterly figures presented by AppLovig for the reporting period. Revenue in the first quarter rose from $1.06 billion in the previous year to $1.48 billion. Net profit doubled from $236.2 million to $576.4 million.

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Original news from 18 February 2025, 11:06 a.m.


For $900 Million
##### AppLovin Considers Selling Its Stagnating Mobile Games Business
**The US mobile gaming specialist AppLovin has disclosed a possible spin-off of its mobile games division in a filing with the US Securities and Exchange Commission (SEC). One potential reason for this move is stagnating revenues, which are failing to keep pace with the growth of its advertising business.**

AppLovin is reportedly considering separating from its mobile gaming unit, according to a mandatory SEC filing. The company has signed a memorandum of understanding (MoU) with an undisclosed potential buyer, which is privately owned. While the MoU is non-binding, it obligates both parties to negotiate a purchase agreement in good faith and refrain from engaging with other potential buyers for a specified period.

According to the filing, a purchase price of approximately $900 million is being targeted for the mobile games business, with $400 million to be paid in company shares of the buyer and $500 million in cash. No further details have been provided.
Shortly before the announcement, AppLovin released its 2024 financial results, reporting strong growth. Revenue increased by 43% to $4.71 billion, while net profit more than quadrupled from $356.7 million to $1.58 billion. However, a closer look reveals that this boom was driven primarily by mobile advertising. Revenue from the advertising segment surged 75% to $3.22 billion, whereas the app business grew by just 3% to $1.49 billion. Additionally, the advertising business is significantly more profitable, with EBITDA rising 91% to $2.72 billion, compared to a 22% increase in EBITDA for the app business, which reached $277 million.

It remains unclear whether and when AppLovin’s mobile games division will actually be sold. The company, known for publishing hyper-casual games such as Cooking Madness, Project Makeover, Game of War: Fire Age, and Woody Block Puzzle, previously attempted to disrupt the 2022 merger between Unity and IronSource with a takeover bid. However, the offer was rejected by Unity’s board. However, the offer was [rejected by the board](https://www.gamesmarket.global/publishing/unity-board-schlaegt-applovin-offerte-aus-und-flirtet-weiter-mit-ironsource-9e46fe2b3ff45c5d4120f83cf2b50783) (in German) and later [withdrawn by AppLovin](https://www.gamesmarket.global/publishing/update-applovin-zieht-angebot-fuer-unity-zurueck-d111304b6184558d035b725f55e0c155) (in German).

Tripledot Studios Acquires AppLovin's Mobile Games Business