- Take-Two Interactive is in talks to sell its Chartboost adtech division.
- The sale is in line with Take-Two’s focus on premium or “AAA” game assets.
- AppLovin and LoopMe are potential buyers. The talks are not over yet.
Take-Two Interactive, the video game giant behind franchises like “NBA 2K24” and “Grand Theft Auto”, is discussing the sale of its Chartboost adtech division.
According to multiple people familiar with the process, the company plans to move Chartboost to streamline its focus on premium or “AAA” gaming. These people have requested anonymity to protect their business relationships; their identities are known to Business Insider.
Adtech companies AppLovin and LoopMe have emerged as potential buyers of Chartboost’s assets, the people said. Chartboost’s acquisition talks with these companies are not complete 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 through its purchase of the mobile gaming company in 2022 for $12.7 billion Zynga.
Zynga only had bought by Chartboost a year earlier for approximately $250 million. Zynga has built popular game franchises such as “Words With Friends“,” “FarmVille” and “Two dots”.
Chartboost offers technology that helps mobile app developers monetize their apps and acquire new users through mobile ads. In the acquisition of Chartboost, Zynga said earlier it gained more control over how its games made money and was able to keep more of the advertising revenue than outsourcing to an outside vendor where it would have to pay additional fees.
Zynga recently began telling advertising customers that it intends to move campaigns booked and managed through Chartboost to rival AppLovin, a person familiar with the matter said. AppLovin has expressed interest in acquiring some of Chartboost’s assets, two separate sources said. These include its demand-side platform, which advertisers use to buy ads, and its mediation technology, which helps advertisers identify the most valuable ad networks for their campaigns.
AppLovin has been one of the adtech sector’s breakout successes, with its stock up more than 343% this year. It has a market capitalization of nearly $58 billion, making it the darling of the industry Business counterwith a market cap of around $61 billion at the time of writing.
AppLovin offers a similar but bigger business to Chartboost – offering adtech developers a way to monetize their mobile games and find new users. It has also expanded its offerings beyond apps into areas such as streaming TV advertising.
Elsewhere in the UK privately held adtech company LoopMe has been looking at acquiring ad exchange Chartboost as it plans to expand its footprint in the US and strengthen the sell side of its business. Maggie Mesa, Chartboost’s former senior vice president of global delivery and partnerships, will soon join LoopMe to lead the effort, two people familiar with the matter said.
LoopMe, which took a majority investment from Mayfair Equity Partners in 2022, at the time, BI said it planned to pursue acquisitions and a possible initial public offering.
Take-Two indicated in recent earnings that while advertising remains important to its mobile game assets, the company is focusing more on generating revenue directly from consumers.
In its most recent quarter, Take-Two said its mobile segment grew net bookings by mid-single digits, and that was partially offset by a decline in its hyper-casual portfolio — games that tend to rely more heavily on advertising.
Activity in Adtech shops increased during this year. According to investment bank LUMA Partners, there were 58 adtech deals by the end of the third quarter, up 49% from the same period in 2023. LUMA Partners said the deal flow largely reflected industry consolidation as companies merged to acquire range or entered new geographic areas. and markets.