Blackstone Acquires Mobile Video Ad Company Vungle For About $750 Million

By Amit Chowdhry ● July 16, 2019
  • Vungle has been acquired by Blackstone for about $750 million, according to a number of reports

Private equity firm Blackstone announced it has acquired Vungle — which is a leading performance marketing platform for in-app video advertisements on mobile devices. Vungle is used by more than 60,000 mobile apps worldwide built by leading companies like Rovio, Zynga, Pandora, Microsoft, and Scopely.

Vungle serves over 4 billion video views per month across a billion unique devices. And Vungle has been consistently ranked #1 for cross-platform user retention by industry mobile performance indexes.

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“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. 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,” explained Vungle CEO Richard Tallman.

Blackstone also reported that Vungle also reached a settlement agreement with founder Zain Jaffer and “is pleased to have this matter resolved.”

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“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,” said Blackstone Principal Sachin Bavishi.

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The terms of the deal were undisclosed, but a number of reports have cited a deal value of more than $750 million.

“Blackstone is excited to invest in a leader focused on the intersection of the rapidly expanding mobile gaming and mobile advertising spaces. We look forward to contributing Blackstone’s resources to accelerate Vungle’s growth trajectory in the years ahead,” added Blackstone senior managing director Martin Brand.

The transaction is expected to close later this year and it is subject to customary closing conditions. Goldman Sachs & Co. LLC served as financial advisor to Vungle and Guggenheim Securities, LLC is serving as financial advisor to Blackstone on the deal. And DLA Piper LLP (US) is serving as legal advisor to Vungle and Simpson Thacher & Bartlett LLP is serving as legal advisor to Blackstone.

Jaffer founded Vungle in 2011 with co-founder Jack Smith. Smith is now running a company that invests in community-driven startups called The Tribe. and is an advisor + investor for a number of companies.  Last year, Jaffer had attempted to partner with private equity buyers to acquire Vungle last year.

Featured image credit: Vungle