Chinese PE Firm Buys American Mobile Ad Company

By Editor
September 30, 2016

Foreign mobile advertising companies are prohibited from gaining an operating license in China, Parajumpers Gobi so it makes sense for a foreign company to seek a Chinese buyer to exploit the Chinese market.

China-based Orient Hontai Capital has acquired a majority stake of advertising technology start-up AppLovin for US$1.42 billion.

The U.S.-based ad tech company reportedly sent executives to China earlier this year to seek ways to enter the potentially lucrative Chinese market.

AppLovin currently claims over two billion users. Kansas State Wildcats AppLovin reportedly generated US$234 million in revenue in 2015, Parajumpers Denali and revenues are expected to double this year, FREE 5.0 though the number could not be verified as it is still a closely-held entity.

After the completion of the deal, ULTRA BOOST which is expected to take place before year end, canada goose mystique parka Orient Hontai Capital is to help the company expand in China.

But this support may be cumbersome for the American company. Nike Benassi Because foreign mobile advertising companies are not permitted operating licenses in China, Womens Air Jordan 13 AppLovin would likely need to create a variable interest equity entity to hold its assets in China. Washington Huskies Through this VIE arrangement, Air Griffey Max the Chinese government would allow the 100% Chinese-owned local company to operate AppLovin’s business in China,

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