AppLovin is acquiring Adjust, reportedly for $1 billion. But is this a risky move considering the massive changes about to hit the mobile app ecosystem?

AppLovin has struck once more.

Bloomberg scooped late Wednesday afternoon that AppLovin is on the cusp of buying cellular app attribution startup Modify for $1 billion.

The information was confirmed by AppLovin in a press launch. [Read the release].

AppLovin is an app advertising platform that helps advertisers automate their person acquisition and re-engagment campaigns. Modify, which closed a $227 million funding round in June 2019, is a Berlin-based startup with app-focused services that vary from cellular measurement and advertising automation to fraud prevention and cybersecurity. It has 16 places of work around the globe and greater than 500 staff.

Greater than 40,000 apps use a number of of Modify’s options.

However why purchase an app monitoring and attribution firm weeks earlier than your complete app ecosystem is concerning the change because of Apple’s new privateness framework for iOS 14?

In keeping with Adjust’s help center, the newest variations of its SDK provide assist for “key components of Apple’s iOS 14 replace,” together with an “enhanced variety of knowledge factors which are used for probabilistic matching to attribute installs from clicks when the IDFA isn’t out there.”

It’s a dangerous method, contemplating Apple’s iOS 14 documentation clearly states that fingerprinting is a nonstarter.

And there’s additionally the query of Modify’s independence, though AppLovin mentioned that Modify will retain its model and tradition and proceed to function as a definite firm.

“Measurement, very similar to a referee in a sports activities sport, have to be unbiased,” mentioned Charles Manning, CEO of Kochava, one in all Modify’s rivals. “Modify owned by Applovin removes their independence.”

No matter these potential danger components, AppLovin has been sitting on a mountain of money, which it’s not been shy about spending.

In 2018, Chinese language non-public fairness agency KKR purchased a $400 million minority stake in AppLovin, which raised the corporate’s valuation to roughly $2 billion.

Just a few months later, AppLovin bought in-app header bidding solution MAX adopted in 2019 by SDK administration platform SafeDK. AppLovin has additionally made a sequence of strategic investments in sport studios over the previous few years, together with PeopleFun, Clipwrire Video games, Geewa and Supercell-backed Redemption Video games.

On high of that, AppLovin has constructed its personal in-house sport publishing division referred to as Lion Studios that helps shepherd builders by means of the sport growth and monetization course of.

However AppLovin’s greatest acquisition thus far – and by far – was in Might of final yr when it bought gaming giant Machine Zone.

On the time, an AppLovin spokesperson instructed AdExchanger that a part of the rationale behind the MZ acquisition was for AppLovin to proceed being “one of many fastest-growing cellular sport firms on the planet.”

“We’re additionally a number one monetization and advertising platform for sport builders all over the place,” the spokesperson mentioned.

It now seems that imaginative and prescient extends to cellular measurement with the acquisition of Modify.

“Modify’s product-first method to the attribution and analytics house is corresponding to how we constructed AppLovin,” Adam Foroughi, AppLovin’s CEO and co-founder, mentioned within the launch. “Collectively, we consider we are going to propel advertising instruments innovation ahead for cellular app builders globally.”

It’s unclear whether or not the Modify deal, which continues to be topic to regulatory approvals, might be in money, inventory or a combination. Modify’s complete funding is $250 million since 2013.

AppLovin didn’t reply to a request for remark and Modify declined to share one.