Blackstone Considers Selling Liftoff for Over $4 Billion
New York City, Saturday, 11 January 2025.
Blackstone is evaluating strategic options for Liftoff, potentially selling the mobile app marketing provider at a valuation exceeding $4 billion, showcasing its portfolio optimization efforts.
Strategic Evaluation Details
Blackstone Inc. (NYSE: BX) [5], the world’s largest alternative asset manager, is working with Goldman Sachs and Jefferies to explore strategic alternatives for its mobile advertising platform Liftoff [1]. The evaluation process, which began in January 2025, includes both a potential sale and the possibility of an initial public offering (IPO) [1][2]. The Redwood City, California-based company currently generates approximately $650 million in annual revenue and $350 million in EBITDA [1].
Valuation and Market Position
Blackstone is targeting a valuation of more than $4 billion, including debt, which would represent more than 10 times Liftoff’s 12-month EBITDA [1][4]. The company has established itself as a significant player in the mobile marketing sector, serving major clients including Amazon, PayPal, and Lyft [1][4]. This potential transaction comes as Blackstone, which manages assets exceeding $1.1 trillion as of September 2024, anticipates an improved environment for dealmaking in 2025 [1].
Historical Context and Formation
Liftoff’s current form resulted from a strategic merger between Vungle and Liftoff, orchestrated by Blackstone following its acquisition of Vungle in 2019 [1]. The company previously explored an IPO in late 2021, but those plans were suspended following market disruptions caused by geopolitical events [1][4]. The timing of this new strategic evaluation appears more favorable, as Blackstone expects enhanced conditions in equity capital markets [1].
Market Timing and Outlook
The potential transaction comes at a time when Blackstone’s stock (NYSE: BX) trades at $164.85 as of January 10, 2025 [5]. While the deliberations are still in early stages [1], this strategic move aligns with Blackstone’s broader portfolio optimization strategy [GPT]. The company is scheduled to report its next earnings on January 23, 2025 [5], which could provide additional insights into this potential transaction.