AppLovin Corp is preparing to build a social networking platform after the mobile advertising company’s failed bid to buy TikTok’s assets outside of China last year.
The plans were outlined by a senior AppLovin executive in a recent Chinese-language podcast and detailed in a job posting seeking someone to "architect the digital backbone of our next-generation social platform.”
Chief Product and Engineering Officer Giovanni Ge described the move in The Valley 101 podcast as the opposite to that of Meta Platforms Inc, which first built up an audience on Facebook and Instagram before monetizing it with advertising. AppLovin already has an ad placement system but predominantly delivers those ads into other companies’ apps, after selling a portfolio of games it owned last year.
The transition, if successful, could give Palo Alto-based AppLovin access to more user data and control over the mobile advertising market, while placing it into direct competition with social media giants like Meta, TikTok, and Snap.
AppLovin exploded in value in recent years, driven by its advertising technology that helps mobile apps and games acquire new users and monetize their platforms. In December, AppLovin’s market value reached an all-time high of $248 billion.
The stock has been rattled by shortseller reports and investor skepticism over whether AppLovin can successfully expand into e-commerce advertising. The challenges come amid broader concerns about how AI could disrupt the advertising industry. Shares are down roughly 40% this year, bringing the company’s market value to around $137 billion.
AppLovin expressed an interest in buying TikTok’s business outside of China after the US threatened to ban the app unless owner ByteDance Ltd sold it to a US-based entity. This triggered bids from several companies before it was acquired by a consortium including Oracle Corp, Silver Lake and Andreessen Horowitz.
The job ad for a Singapore-based "Backend Engineer” explains that the goal is to build a system that allows for media delivery, real-time social interactions and content discovery.
AppLovin did not immediately respond to a request for comment. – Bloomberg
