David Senra · May 3Bootstrapping a Business to $5 Billion in Free Cash Flow | AppLovin’s Adam Foroughi
Agreed to put in $1B at a valuation over $1.4B for 70% control, which triggered a CFIUS review lasting over a year. The deal was restructured into a convertible note capped under 10%.
Tips
- Foroughi's China investment took over a year of CFIUS scrutiny to unwind▶ 30:12KKR later refinanced the note in 2018, and EBITDA passed $100 million in 2017 during the frozen period.
- Foroughi stayed loyal to the investors who bet on AppLovin, even when walking away was cheaper▶ 37:10The deal became a convertible note that gave the investors under 10% and was later cleared out with KKR's capital.
