Adam Foroughi, chief executive of AppLovin Corporation (NASDAQ:APP), says that the company’s bid to acquire TikTok was significantly stronger than any other bid.
While others are only interested in TikTok US, AppLovin wants to merge with the global operations of social platform. This effectively makes it a partnership that will benefit Chinese as well.
Foroughi’s remarks come shortly after President Trump offered ByteDance another 75 days to de-load its US operations.
TikTok is still available in the United States until the extended deadline.
AppLovin’s stock has fallen more than 50% in the last two months, mainly due to the tariff-driven sell-offs and allegations of short-sellers.
AppLovin could boost TikTok advertising dollars
In an interview with CNBC CEO Adam Foroughi praised President Trump as a great dealmaker, adding that what AppLovin proposes is essentially “a bigger version of all the transactions contemplated.”
The Nasdaq listed firm has an algorithm which, when combined with TikTok’s audience, can trigger a significant increase in the amount of advertising dollars spent on social media platform.
Other US entities interested include cloud giant Oracle and retail behemoth Amazon. Frank McCourt is a billionaire, as are a number of private equity firms.
Note that APP wants to takeover TikTok while it is already dealing with allegations of dubious business practices from Muddy water and claims of ad-fraud from Fuzzy Panda research.
AppLovin’s finances remain strong
AppLovin’s stock has fallen in recent months, despite the fact that the ad tech company reported earnings in February that exceeded Street estimates.
APP’s latest reported quarter saw $1.73 per share on $1.37 billion of revenue, far exceeding the $1.24 per share and $1.26 million that experts had predicted.
The Nasdaq-listed firm also guided for revenue of $1.36 billion to $1.3 billion for Q1 in the past, which was also ahead of analysts expectations of $1.32billion.
AppLovin does not pay a dividend as of the date of this article.
Should you buy AppLovin in April?
Wall Street is still bullish on APP, despite AppLovin’s recent share price declines.
Citi reiterated earlier this week its “buy” ratings on the mobile technology company.
The firm has set a price target of $600 on AppLovin, which indicates a potential upside of more than 170% from current levels.
In its research note, the Nasdaq-listed firm acknowledged that purchasing TikTok’s US assets could prove to be a significant benefit for the firm over the long term.
Citi warned that the likelihood of a TikTok-AppLovin deal was “far lower than 1%”.
AppLovin’s stock has lost all its gains made after the US elections in 2024 due to the ongoing selling.
This post AppLovin’s CEO explains why TikTok’s proposal is better than other bids first appeared on The COINPAPER.COM
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