Report: Tripledot Studios to acquire AppLovin's game development studios for $900 million

Last month, AppLovin announced its decision to sell its video game studios to focus on its ad business. New details have now emerged about the deal and the buyer of the company’s assets.

• According to Business Insider, AppLovin is in talks to sell its gaming business to UK mobile developer Tripledot Studios for $900 million. Information came from four anonymous sources familiar with the matter.
• PocketGamer.biz confirmed that the buyer is a private, London-based company, citing its own sources. Despite ongoing negotiations, the deal hasn’t yet been finalized, and the plans could still change.
• On February 12, AppLovin CEO Adam Foroughi told investors during an earnings call that the company has signed an “exclusive term sheet” to sell all of its apps business.
• “Seven years ago, we began acquiring gaming studios to help train our earliest machine learning models, an invaluable step in shaping the AI that underpins our AXON platform,” he said. “However, we’ve never been a game developer at heart. We have immense respect for the creativity it takes to build games, including from teams in our studios.”
• The deal is worth $900 million, including $500 million in cash and $400 million as a “minority equity stake in the combined private company.” AppLovin plans to the transaction in the first quarter of 2025.

AppLovin currently owns 10 game development studios, including Machine Zone, Belka Games, PeopleFun, Athena Studio and Magic Tavern.

Tripledot Studios is a UK-based private company focused on mobile puzzle games. Its portfolio includes titles such as Woodoku, Blossom Match, and Triple Tile. In 2022, it raised $116 million in a funding round led by 20VC, bringing its valuation to $1.4 billion.