Form 4: KKR Denali Holdings Sells AppLovin Corp Shares and Converts Class B Stock to Class A

KKR Denali Holdings L.P. reports the conversion of Class B common stock to Class A common stock, the sale of Class A common stock, and in-kind distributions of Class A common stock related to charitable donations.

Summary

• KKR Denali Holdings L.P. converted 16,000,000 shares of AppLovin Corporation's Class B common stock into an equal number of Class A common stock on March 6, 2024.
• On the same day, KKR Denali Holdings L.P. sold 19,866,397 shares of Class A common stock at a price of $54.46 per share.
• Additionally, 416,926 shares of Class A common stock were distributed in-kind to partners and shareholders for charitable donations.
• Following these transactions, KKR Denali Holdings L.P. directly owns 583,493 shares of Class A common stock and indirectly owns 166,567 shares of Class A common stock.
• The filing also includes details about the relationships between various KKR entities, including KKR Denali Holdings GP LLC, KKR Americas Fund XII L.P., KKR Associates Americas XII L.P., and KKR Americas XII Limited.

Sentiment

Score: 5

Explanation: The document is a standard regulatory filing detailing transactions by a major shareholder. It doesn't inherently convey positive or negative sentiment, but rather provides factual information about stock transactions.

Industry Context

This filing reflects activity by a major shareholder, KKR, in AppLovin Corp, which is relevant to understanding the stock's trading dynamics and investor sentiment. Large transactions by significant holders can influence market perception and stock price.

Comparison to Industry Standards

• Form 4 filings are standard practice for reporting changes in beneficial ownership by insiders and major shareholders, ensuring transparency in the market.
• The sale of shares by KKR is similar to transactions seen by other private equity firms after the lock-up period following an IPO or significant investment.
• The in-kind distributions for charitable donations are a common practice among large shareholders to manage tax liabilities and support philanthropic causes.

Stakeholder Impact

• The sale of shares by KKR could potentially impact the stock price of AppLovin Corp, affecting shareholders.
• The in-kind distributions for charitable donations benefit the recipient charities.

Key Dates