Flexion Mobile Plc has announced that it has signed an investment agreement with Liteup Media UG, a German start-up with a new and unique service for mobile game influencer marketing.
Flexion has the right to acquire up to 40% of the company through directed share issue at an agreed fixed valuation of USD 2.5 million with an additional option to acquire the whole company from the founders in 2025 for a multiple of gross profit. Flexion will initially acquire 20% of the company for USD 500,000 through a directed share issue.
The influencer marketing space is estimated to be worth USD 13.8 billion and it is growing fast making it popular with mobile game advertisers. Liteup Media makes influencer marketing scalable, performance-based, and more accessible while providing mobile game developers with better tools for monetisation. This closes the gap between mobile performance marketing and influencers. The app-based service is currently in soft launch on Google Play. It is expected to launch fully on Android and iOS in early 2022.
Expanding its service offering for game developers is a key strategy for Flexion and with this investment the company takes a more significant step into influencer marketing with a new and disruptive model. Since the deprecation of IDFA on iOS last year, advertisers are actively looking at new ways to boost revenue for their games. This in turn has made influencer marketing even more attractive.
“There is no clear market leader in the fast-growing and fragmented influencer market which makes it ripe for disruption and consolidation. We are impressed with the Liteup Media team and their vision for influencer marketing. As with any early stage start up, there is a lot of hard work ahead. Flexion will add value by sharing experience, deal opportunities and developer relationships. We have already seen positive results with influencer marketing as an effective way to attract paying players to the alternative app stores we work with. Influencer marketing is a natural part of a vibrant and competitive market. This investment will give us hands-on experience, relationships and instant access to a new vertical which will become an important extension to our distribution service,” Jens Lauritzson, CEO of Flexion Mobile, said.
“We are thrilled to announce this investment by Flexion, a highly strategic partner for us in this fast-growing market. As one of the leading mobile gaming distributors on Android, Flexion’s support will be fundamental as we set our sights on building the future of growth solutions for mobile games,” Aaron Baker, CEO of Liteup Media, said.