- Take-Two Interactive is in talks to sell its adtech division Chartboost.
- The sale is in line with Take-Two’s focus on premium or “AAA” gaming assets.
- AppLovin and LoopMe are potential buyers Negotiations are pending.
Take-Two Interactive, the video game giant behind franchises such as NBA 2K24 andGrand Theft Auto,” is in talks to sell its adtech division Chartboost.
The company plans to offload Chartboost to streamline its focus on premium, or “AAA,” games, according to multiple people familiar with the process, who asked to remain anonymous to protect their business relationships. their identities are known to Business Insider.
Adtech companies AppLovin and LoopMe have emerged as potential buyers of Chartboost assets, the people said.Chartboost acquisition talks with these companies have not been finalized and could still change or fall apart.
Take-Two declined to comment. AppLovin and LoopMe did not respond to requests for comment.
Take-Two acquired Chartboost in a $12.7 billion acquisition of the mobile game company in 2022 Zinga.
Zynga had only bought by Chartboost a year ago, for approximately 250 million dollars. Zynga has created popular game franchises such as “Words with friends“, “FarmVille“, and “Two Points”.
Chartboost offers technology that helps mobile app developers monetize their apps and acquire new users through mobile advertising.Chartboost, acquired by Zynga said before he gained more control over how his games were monetized and could retain more ad revenue, as opposed to outsourcing to a third-party vendor where he would have to pay additional fees.
Zynga recently began telling advertising clients that it plans to offload campaigns booked and managed by Chartboost to rival AppLovin, a person familiar with the matter said sources.These include its on-demand platform, which advertisers use to place their ad buys, and its mediation technology, which helps advertisers identify the best value for their campaigns. advertising networks.
AppLovin has been one of the big successes of the adtech sector, and its stock is up more than 343% this year.It has a market cap of nearly $58 billion, ranking it with the industry darling Trading tablewhose market cap at the time of writing was around $61 billion.
AppLovin offers a similar but larger business to Chartboost, offering developers to monetize their mobile games and find new users.It has also expanded its offering beyond apps into areas such as streaming TV advertising.
Elsewhere in the United Kingdom private equity owned adtech company LoopMe has considered acquiring ad exchange Chartboost as it plans to expand its presence in the U.S. and boost the sales side of its business.Maggie Mesa, Chartboost’s former senior vice president of global sourcing and partnerships, will soon join LoopMe to lead that effort, two people familiar with the matter said.
LoopMe, which took the majority investment Mayfair Equity Partners in 2022, it told BI at the time that it plans to pursue acquisitions and a possible initial public offering.
Take-Two said in recent earnings calls that while advertising is important to its mobile gaming assets, the company is more focused on generating revenue directly from consumers.
In its most recent quarter, Take-Two said its mobile division increased net bookings in the mid-single digits, and that that was partially offset by a decline in its hyper-casual portfolio, games that rely more heavily on advertising.
Adtech deal activity soared this year, with 58 adtech deals at the end of the third quarter, LUMA Partners says The flow largely reflects industry consolidation, as companies have merged to gain scale or enter new geographies and markets.