Summary
AppLovin Corporation (APP) announced a significant share repurchase agreement to buy back approximately $335 million worth of its Class A common stock from KKR Denali Holdings L.P. at a price of $21.00 per share. This transaction represents an approximately 8% discount to the previous day's closing price and is expected to close shortly. The repurchase was approved by a Special Committee of independent directors, indicating a structured and governed process. In conjunction with this private repurchase, AppLovin's Board also authorized an increase in its share repurchase program by $296 million, bringing the total authorized amount to $500 million. This demonstrates management's confidence in the company's financial position and its commitment to returning value to shareholders. Following the KKR transaction, approximately $165 million will remain available under the expanded program, allowing for continued flexibility in managing its capital structure and potentially further share buybacks.
Key Highlights
- 1AppLovin is repurchasing approximately $335 million of Class A common stock from KKR Denali Holdings L.P. at $21.00 per share.
- 2The repurchase price of $21.00 per share represents an approximately 8% discount to the May 16, 2023 closing price of $22.88.
- 3The transaction was approved by a Special Committee comprised of independent directors.
- 4The share repurchase agreement is expected to close by May 18, 2023.
- 5AppLovin's Board authorized an increase of $296 million to its share repurchase program, bringing the total to $500 million.
- 6Post-KKR repurchase, approximately $165 million will remain available under the expanded share repurchase authorization.
- 7Future repurchases may occur through open market purchases, privately negotiated transactions, or Rule 10b5-1 plans.