Form 4: AppLovin Corp Director Vivas Enters $131 Million Prepaid Forward Sale Contract

AppLovin Corp director Eduardo Vivas entered a prepaid variable forward sale contract, receiving $131 million in exchange for a future delivery of AppLovin Class A common stock or cash equivalent.

Summary

• On May 12, 2025, AppLovin Corp director Eduardo Vivas entered into a prepaid variable forward sale contract.
• Vivas received a cash payment of $131,099,760.00 from an unaffiliated counterparty.
• In exchange, Vivas agreed to deliver shares of AppLovin Class A common stock or an equivalent amount of cash on the contract's maturity date.
• The number of shares or cash equivalent will be determined based on the stock price at settlement, with a specified floor and cap price.
• The contract is scheduled to settle in May 2027.
• Vivas pledged 550,000 shares of AppLovin Class A common stock as collateral under the contract.
• The reporting person retains beneficial ownership of the pledged shares unless and until settlement.

Sentiment

Score: 5

Explanation: The document describes a financial transaction. It is neutral in tone and does not inherently indicate positive or negative sentiment.

Risks

• The value received at settlement is dependent on the future stock price of AppLovin, which is subject to market fluctuations.
• The director's indirect holding of 550,000 shares is subject to the terms of the contract and may change upon settlement.

Future Outlook

The reporting person undertakes to file an amendment to this Form 4, or a subsequent Form 4, upon settlement of the Contract to reflect any actual transfer of shares.

Industry Context

Prepaid forward sale contracts are often used by corporate insiders to monetize their holdings while deferring capital gains taxes and retaining some potential upside in the stock.

Stakeholder Impact

• The transaction could potentially impact shareholders depending on the settlement price and any subsequent market reaction.
• The transaction does not appear to have any immediate impact on employees, customers, suppliers, or creditors.

Next Steps

• The reporting person will file an amendment to this Form 4, or a subsequent Form 4, upon settlement of the Contract to reflect any actual transfer of shares.

Key Dates

Keywords

AppLovin, Prepaid Forward Sale Contract, Director, Eduardo Vivas, Class A Common Stock, Settlement, Shares, Cash