AppLovin has backed out of its sale to Orient Hontai Capital for $1.4 billion following a pushback from the US government over the deal.
As reported by Reuters, Orient Hontai instead acquired a 9.98% stake in AppLovin for $140 million in January 2017. The company has also taken on an $841 million debt investment from Orient Hontai.
Sources claim that the Committee on Foreign Investment in the United States had concerns surrounding a foreign company having access to the company's data. The new deal is expected to pass by with further scrutiny as it does not give Orient Hontai any control.
"This fully restructured agreement permits us to maintain full control of our business while accessing additional liquidity to finance our continued global growth," said AppLovin CEO Adam Foroughi.
The original $1.4 billion deal was announced back in September 2016. The deal was expected to close in the fourth quarter of 2016.
"We've seen a high volume of interest in our business, and we ultimately chose to partner with Orient Hontai because of their strong connections in the Chinese market," said Foroughi at the time.