Mixed Results for Mobile Gaming Giant AppLovin After IPO

    • AppLovin raised $2 billion in its IPO.
    • The mobile tech company is valued at $21.5 billion after shares dropped in its market debut.

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AppLovin, the California-based mobile tech company behind over 200 games, raised $2 billion in its IPO, giving the company a brief $28.6 billion valuation.

Then shares fell from a trading debut of $80 and closed at $61 on Friday, lowering the company’s value to $21.5 billion. More than 22.5 million AppLovin shares have been sold.

AppLovin was almost acquired by Chinese private equity firm Orient Hontai Capital for $1.4 billion in 2016, now it makes more than that in a year. 

Before going public, the company generated $1.45 billion in revenue in 2020, a 46% uptick from the year prior. Private equity group KKR purchased a $400 million stake in 2018.

Mobile gaming is on fire right now. In March, “Genshin Impact,” developed and published by Shanghai-based miHoYo, became the fastest mobile game to make $1 billion. Tencent, the Chinese conglomerate behind several top mobile titles, pulled in $73.8 billion last year. 

Now that AppLovin sits at the table of mobile gaming heavyweights, it’s looking to grow.

Earlier this month, the company agreed to acquire mobile measurement and fraud prevention company Adjust for $1 billion in cash and stock, expanding its mobile app ecosystem.