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Leading Mobile Video Ad Company Vungle is Submitting to Blackstone for a Whopping $750M

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by Verolian Opiyo · 3 min read
Leading Mobile Video Ad Company Vungle is Submitting to Blackstone for a Whopping $750M
Photo: Vungle / LinkedIn

Vungle, a leading mobile ad tech firm has gone through a rocky, unusual experience ever since Mary Meeker’s featured it in their 2017 report. Now instead of suffering alone, its acquisition is going to Blackstone for just $750 million.

Blackstone, private equity company announced on Monday that it has reached a conclusion to acquire Vungle, a mobile advertising firm. The firms also announced that a court case involving the founder has been amicably settled. However, the parties were hesitant to reveal the amount, but sources close with the situation leaked that the acquisition cost was over $750 million.

Blackstone headquartered in New York has financial muscles to afford such kind of deal, especially with approximately $512 billion in assets under its management. It’s a sweet victory for a firm that had a shaky period in 2017 when the founder Zain Jaffer was convicted of child abuse and felony assault-charges that saw him resign as the CEO of the company, but which were later dismissed. Jaffer later returned to court to reclaim his job in March, and now that lawsuit is over.

Before the agreement, Blackstone recognized that it’s yet to be acquired company has not only grown but also has more than 200 competent employees. The in-app video advertisement technology of Vungle is utilized by publishers of over 60,000 mobile apps such as Scopely, Microsoft, Pandora, Zynga, Rovio, among others.

Vungle serves over 4 billion video views monthly on over a billion different devices and is often ranked position 1 for cross-system user retention by sector mobile score indexes, the firms stated.

“We are extremely excited about our new partnership with Blackstone. Blackstone’s acquisition will further accelerate Vungle’s mission to be the trusted guide for growth and engagement, transforming how users discover and experience mobile apps,” said Tallman, the current CEO, in a statement issued today.

“We would like to thank Crosslink Capital and Thomvest Ventures for their support in building Vungle into a market leader. As we look ahead at the significant opportunity in the in-app mobile advertising market, with Blackstone’s support, we will aggressively expand our global platform through organic and inorganic growth.”

Vungle has it’s headquartered in San Francisco with offices in Seoul, Singapore, Tokyo, Beijing, Berlin, and London

In a statement, Blackstone Principal, Sachin Bavishi said:

 “As a best-in-class performance marketing platform, Vungle represents a key growth engine for the mobile app ecosystem. Our investment will help deliver on the company’s tremendous growth potential and we look forward to partnering with management to extend Vungle’s strength across mobile gaming and other performance brands.”

The deal is expected to end later this year according to the customary closing terms and regulations. Goldman Sachs & Co. is serving as the legitimate financial consultant to Vungle, while Guggenheim Securities is acting as a financial consultant to Blackstone regarding the transaction. Simpson Thacher & Bartlett is acting as the legal consultant to Blackstone, and DLA Piper (U.S) is acting as a legal consultant to Vungle.

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Verolian Opiyo

An avid reader and enthusiastic writer, Verolian recently chose to dedicate his time doing freelance writing. He holds a degree in English Literature and is experienced in the future of finance, creativity, literature, and innovation tucked under his belt. Verolian crafts engaging and compelling content for Blockchain and Crypto audience.

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