- Strategic Evaluation: Blackstone, the world’s largest alternative asset manager, is considering strategic options for Liftoff, a mobile app marketing provider, potentially valuing the company at over $4 billion.
- Merger Origins: Liftoff was formed through the merger of Vungle and Liftoff, facilitated by Blackstone, creating a robust platform for mobile app developers.
- Market Position: Liftoff generates $650 million in annual revenue and $350 million in EBITDA, positioning it as an attractive target in the competitive app monetization landscape.
- Potential Strategies: Blackstone is exploring both sale and initial public offering (IPO) options for Liftoff, working with investment bankers to evaluate these strategies.
- Valuation Expectations: Blackstone aims to command a valuation for Liftoff equivalent to more than 10 times its EBITDA, underscoring its growth potential and value in the mobile app marketing sector.
- Notable Clients: Liftoff’s client base includes prominent corporations such as Amazon, PayPal, and Lyft, highlighting its market credibility and ability to serve large-scale mobile app developers.
- Previous IPO Attempt: Liftoff previously explored an IPO in late 2021 but faced challenges due to market disruptions following Russia’s invasion of Ukraine, highlighting the sensitivity of tech IPOs to geopolitical events.
- Blackstone’s Broader Strategy: As the world’s largest alternative asset manager, Blackstone anticipates improvements in equity markets and increased dealmaking activity, positioning itself for an active year in terms of exits and investments.
- Market Outlook: The current economic environment for tech IPOs is characterized by growth opportunities and potential risks, with a cautious approach focused on companies demonstrating strong financial performance and sustainable growth models.
- Future Implications: The strategic choices ahead for Liftoff’s sale or IPO will influence the company’s future trajectory, the broader mobile marketing industry, and stakeholders, including employees and investors.
Blackstone Eyes $4 Billion Liftoff Exit, Mulls IPO or Sale
