We recently reported that mobile marketing platform, AppLovin, sold a majority share of the company to Chinese investor Orient Hontai Capital at a valuation of $1.4bn.
With the Chinese mobile advertising market expanding rapidly, we’ve wondered what exactly this means for the industry? What are the implications for other players in the mobile advertising field and who may be next to enter the market or be snapped up by a notable Asian investor?
We’ve asked leading industry executives to share their reactions to the news and we’ve got the latest round-up for you here:
Andrew Degenholtz, President, Oplytic:
“The Applovin acquisition demonstrates the importance of focusing on performance marketing for mobile. Results matter and advertisers need to measure return on investment. Smart data modeling, retargetting and re-engagement of mobile web and mobile app users is a key component of every marketers mobile plan.”
“Huge validation that if you stay focused on delivering solid solutions and results for app developers and their businesses, great things will happen. Nice work AppLovin team!”
“This is huge for the entire mobile industry! This acquisition just proves how fast mobile is growing and the extreme demand for high quality app installs. Hats off to Adam and his entire team for their impressive bootstrapped growth!”
“First of all, we would like to congratulate our partners on the acquisition. We have been working in partnership with them in the last year and we have had great results and an overall great experience. Applovin is one of the best companies in the mobile industry. They provide a combination of advanced segmentation capabilities,direct traffic from publishers and a solid technology platform that allows buyers to get very targeted audiences at scale. One of the most impressive facts about Applovin is that the company was generating multi-million dollars in revenue since the first year with no VC money. If you are following the mobile business news you can see that billion dollar acquisitions are not a rare. In the last months, we have seen multiple billion-dollar acquisitions in the mobile market by Chinese companies. Supercell was acquired by Tencent for $8.6B, Playtika was acquired for $4.4B, Opera was acquired for $1.2B and now Applovin. The mobile market in China is growing rapidly and it does so without the two industry giants FB and Google. This creates interesting opportunities for mobile programmatic technology companies. We see this growth also in our Chinese branch which is growing in activity month over month.”
“We are going to see many more ad tech firms get funded/acquired by Chinese money in the next two years. The recent acquisition of Media.net and now Applovin both by Chinese investors only reaffirms the point. [The] ad tech sector is Hot for acquisitions and has certainly exciting times ahead.”
“The news that AppLovin is acquired by a Chinese Investor hasn’t surprised me. For me, it looks logically when big companies buy the other companies and thus increase their capital and expand the sphere of influence on the market. I’ll follow the updates to find out what changes in the mobile app market it will entail.”
“It’s been an incredible couple of months for those observing the ad-tech space and the companies working within it. In particular, whilst the market sentiment has constantly been referred-to as being ‘negative’ on ad tech (and those companies seeking investment) these recent standout deals have brought new vibrancy and renewed focus on companies plying a path of innovation in the space. The AppLovin deal has set another benchmark, and I expect those businesses, like minimob, that focus on performance and results, will continue to attract attention from investors who note the ability to scale mobile advertising massively and globally without restriction.”
“AppLovin’s impressive growth is a testament to the huge demand for innovative, new marketing channels within the mobile industry. The company’s acquisition is also an indication of what we can expect more of in the future: Chinese competition on the app market.”
“This transaction shows the importance of mobile marketing, and the rise of new companies based on technology such as Applovin and as Headway.”
“Orient Hontai Capital’s acquisition of AppLovin closes the third largest deal in the history of mergence and acquisition in advertising industry. It is also the largest deal while a Chinese capital acquires a foreign ad company. Since 2015, more and more Chinese companies and capitals began to lay eyes on overseas companies. According to Zero2IPO’s report, in just first half year of 2016, Chinese companies and capitals completed 107 deals of mergence or acquisition overseas, and the total amount reached $27 billion. It could be attributed to two factors, the first is, abundant Chinese capitals are eyeing far, beyond gradually stagnant investment environment within China. Secondly, foreign capital’s valuation of high-tech and growth type companies like Internet advertising company are relatively low, which makes Chinese capital more competitive. We believe this trend will continue for the next two to three years, and mergence and acquisition initiated by Chinese capitals towards foreign companies, especially Internet advertising companies, will peak in the time period.”
“We’re proud of the AppLovin team for what they have accomplished. Mobile advertising is a tightly knit industry where we often work together and inspire each other to drive product innovation. The stakes are always rising, and the acquisition is a testament to the fervor and passion that drives the industry forward, and a fine example of hard work getting noticed. Congratulations to the AppLovin team, and to Orient Hontai Capital.”
The AppLovin acquisition is an exciting step forward for the start-up and testament to the continued growth of the mobile advertising market. We will continue to monitor upcoming developments and wish AppLovin the best for the future.