AppLovin plans own social network after failed TikTok bid

Investing.com -- AppLovin Corp. is developing its own social networking platform following its unsuccessful attempt to acquire TikTok's non-Chinese assets last year.

The mobile advertising company's plans were revealed in a Chinese-language podcast featuring Chief Product and Engineering Officer Giovanni Ge and confirmed in a job posting seeking someone to "architect the digital backbone of our next-generation social platform."

Ge explained that AppLovin's approach differs from Meta Platforms Inc.'s strategy. While Meta built audiences on Facebook and Instagram before monetizing with advertising, AppLovin already possesses an ad placement system but primarily delivers those ads to other companies' applications after divesting its game portfolio last year.

If successful, this transition could provide the Palo Alto-based company with greater access to user data and increased control in the mobile advertising market. However, it would also place AppLovin in direct competition with established social media giants including Meta, TikTok, and Snap.

AppLovin previously showed interest in purchasing TikTok's operations outside China when the US threatened to ban the app unless ByteDance Ltd. sold it to a US-based entity.

The company's market value reached $248 billion in December, driven by its advertising technology that helps mobile apps acquire users and monetize platforms. AppLovin shares have declined approximately 40% this year amid shortseller reports and investor concerns about its expansion into e-commerce advertising, bringing its current market value to under $140 billion.

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