AppLovin Corporation completed the acquisition of Machine Zone, Inc. for an aggregate acquisition price of approximately $330 million.
May 18, 2020
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AppLovin Corporation agreed to acquire Machine Zone, Inc. on May 14, 2020. Collaboration will begin now and will eventually include AppLovin moving its headquarters a mile away to the Machine Zone office in Palo Alto. The transaction is subject to to approvals. Nicholas Tuosto of LionTree Advisors, LLC acted as exclusive financial advisor to AppLovin. Michael Esquivel, Kris Withrow, David Michaels, Shawn Lampron, Marshall Mort, Monica Zwolinski, Anna Suh, Ralph Pais, Mark Ostrau, Brent Hoard and William Skinner of Fenwick & West LLP acted as legal advisors to AppLovin. Houlihan Lokey, Inc. (NYSE:HLI) acted as financial advisor to the board of directors of Machine Zone, Inc. Eric M. Krautheimer and Rita-Anne O'Neill of Sullivan & Cromwell LLP acted as legal advisor to Houlihan Lokey, Inc.
AppLovin Corporation completed the acquisition of Machine Zone, Inc. for an aggregate acquisition price of approximately $330 million on May 19, 2020. Under the terms, AppLovin paid $287.1 million cash to Machine Zone lenders, common stock warrants issued to Machine Zone lenders and preferred stockholders with the aggregate fair value of $38.2 million and a settlement of the preexisting accounts receivable balance of $3.3 million. Upon completion, Jerome Turnbull joined AppLovin Corporation as director of media buying.
AppLovin Corporation provides application technology platform, AppLovin. The Company operates through two segments: Software Platform, and Apps. Its Software Platform is primarily made up of four key solutions, such as AppDiscovery, MAX, Adjust, and Wurl. AppDiscovery is powered by AXON, its AI-powered advertising engine, and matches advertiser demand with publisher supply through auctions at vast scale and at microsecond-level speeds. MAX is a monetization solution, utilizing an advanced in-app bidding technology that optimizes the value of a publishers advertising inventory by running a real-time competitive auction. Adjust is a measurement and analytics marketing platform which provides marketers with the visibility, insights, and data needed to scale their apps marketing results. Wurl is connected TV (CTV) platform that both distributes streaming video for content companies and provides advanced advertising and publishing solutions to attract viewers and maximize revenue.