Marketing Madness

AppLovin Making Efforts to Get Around Government Restrictions on Sale to Chinese Company

AppLovin had an agreement to sell itself to the Chinese firm, Orient Hontai Capital for $1.4 billion. The US government, however, objected to the deal. The Committee on Foreign Investment in the United States (CFIUS) is a government panel that watches for potential national security threats, and they have been much more restrictive on these types of buyouts, especially since Trump took office.

In order to get around these restrictions, AppLovin and Orient Hontai Capital are restructuring it to make it into a debt investment. They will accept an $841 million debt investment from the company, but will retain ownership. Orient Hantai already owns 9.98% of AppLovin after purchasing that stake for $140 million in January.

AppLovin’s Chief Executive, Adam Foroughi, said, “This fully restructured agreement permits us to maintain full control of our business while accessing additional liquidity to finance our continued global growth.”

While will still have to approve this restructured deal, it is not expected that it will have any issues since the US company retains full control of the business.

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Michael Levanduski

Michael Levanduski is the assistant editor of Performance Marketing Insider, and an experienced freelance writer. He writes content for a wide range of sites in virtually every niche, though he specializes in technical writing as well as creating content for the performance and internet marketing industry. Michael was born in Grand Rapids, MI where he still lives with his wife and three children.

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