AppLovin (APP) Stock: Why It Increased After Hours

By Amit Chowdhry ● Mar 1, 2022
  • The AppLovin Corp (NASDAQ: APP) stock increased by 1.39% after hours in the most recent trading session. This is why.

The AppLovin Corp (NASDAQ: APP) stock increased by 1.39% after hours in the most recent trading session. Investors are responding positively to a couple of announcements from the company

Share Repurchase Program

AppLovin announced that its Board of Directors has authorized a share repurchase program for the company to repurchase up to $750 million of its Class A common stock. The share repurchase program is effective immediately.

Under the share repurchase program, repurchases may be made from time to time through open market purchases or through privately negotiated transactions, subject to market conditions, applicable legal requirements, and other relevant factors. The timing and the actual number of shares repurchased will be determined by management depending on a variety of factors, including stock price, trading volume, market conditions, and other general business considerations. 

The repurchase program does not obligate AppLovin to acquire any particular amount of Class A common stock, has no expiration date, and may be modified, suspended, or terminated at any time at the discretion of the Board.

Wurl Acquisition

AppLovin also announced it has reached a definitive agreement to acquire Wurl, a high-growth software platform in the Connected TV (CTV) market. And the transaction is valued at approximately $430 million and is subject to customary closing conditions.

Wurl’s Global FAST Pass platform enables content companies including A+E Networks, AMC Networks, Scripps, and Bloomberg to distribute streaming video content to over 300 million TVs and reach over 30 million users globally each month. And Wurl’s distribution platform yields unique access to CTV ad inventory and data that can be harnessed to further develop its CTV performance advertising products – Wurl AdPool and Wurl Perform. Plus Wurl makes it effortless for content companies to build and track global distribution for branded linear channels, live events, and on-demand programming to manage and monetize their ad inventory.

Wurl is expected to retain the brand and operate independently with its existing management team. And the acquisition is expected to close in the first half of 2022 and be funded with approximately 55% cash and 45% AppLovin equity.

Key Quotes About Share Repurchase Program

“This announcement demonstrates our confidence in AppLovin’s business and the growth opportunities in front of us. We are committed to driving shareholder value over the long-term through a disciplined capital allocation strategy that balances investing in organic growth and strategic acquisitions, and accessing the markets as opportunities arise.”

— Herald Chen, President and Chief Financial Officer at AppLovin

Key Quotes About Wurl Acquisition

“The acquisition of Wurl will further our commitment to building and growing the world’s largest, most-effective digital marketing platform by providing advertisers a seamless way to tap into the highly addressable and measurable CTV market. We believe our software marketing expertise can further optimize the experience for advertisers and consumers as well as enable content companies to expand their audiences and increase monetization.”The acquisition will extend AppLovin’s software platform capabilities into the large and growing CTV market. In 2021, eMarketer projected that U.S. advertisers spent $14.4 billion on CTV, an increase of 60% compared to 2020, with ad spending projected to surpass $30 billion by 2025.”

— Adam Foroughi, CEO and co-founder of AppLovin

“Our shared vision and values made the opportunity to join forces compelling and unique. AppLovin brings enormous new demand from advertisers and our partnership will enable current customers to realize even more benefits including expanded ad revenue, new viewers, and enhanced distribution to global CTV audiences. Together, we’ll pursue our mission and dramatically impact the CTV market.”

— Sean Doherty Sr., CEO and co-founder of Wurl

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.