AppLovin proposes strategic merger with TikTok Global

Ad tech firm AppLovin has proposed a merger with TikTok Global to cover all assets outside China rather than a buyout.
AppLovin said the aim of its proposed merger is to form a partnership that leverages combined strengths to address security, data, and content challenges while unlocking “massive" potential.
The firm argued that TikTok's ad revenue outside China, estimated at $20 billion in 2024, could reach $80bn with the integration of its Axon AI.
They believe the lack of data and security assurance limits TikTok's ad potential, and without new control, this value may remain untapped.
Moreover, AppLovin's proposal will focus on three key areas: national security, youth safety, and economic growth.
AppLovin said it would take control to eliminate biases and ensure data security and privacy standards worldwide. For youth safety, it plans to implement age-appropriate content moderation to balance safety and free speech.
“A long shot"
Economically, AppLovin plans to integrate its Axon AI advertising model with TikTok, potentially generating billions in revenue and creating over a million jobs globally.
“The synergies could generate tens of billions of revenue in the coming years," said AppLovin CEO Adam Foroughi in a post.
“Let’s be clear: this is a long shot," Adam continued. “But building one of the world’s best advertising AI models was also a long shot, yet we did it. We’re not here for small bets.
“Our goal is to build a massive business that creates value for the world and our shareholders. That said, our core business remains our focus.
He added: “That’s our vision. A partnership to tackle tough challenges, unlock unparalleled economic growth, and reshape the future for businesses and communities worldwide."
Elsewhere, Tripledot is acquiring AppLovin’s games business for $400 million. AppLovin will also receive a 20% ownership stake in Tripledot, with the deal expected to close by early summer 2025.