Blackstone-backed Liftoff Mobile postpones US listing amid software selloff

By Ateev Bhandari and Arasu Kannagi Basil

Feb 5 (Reuters) - Blackstone-backed Liftoff Mobile has postponed its planned U.S. listing, the company said on Thursday, as a selloff in software stocks now extends to first-time share sales.

"Given current market conditions, we have made a business decision to take additional time before listing," the company said in an emailed statement to Reuters.

The delayed-IPO plans come amid a selloff in software and IT-linked stocks, as investors fear disruption from the latest generative AI offerings from the likes of Anthropic and its Claude Cowork.

More than $800 billion has been wiped from the S&P 500 software and services index's .SPLRCIS market cap since January 28, as investors weigh whether AI has shifted from a tailwind for many of these companies to a potential disruptor.

"We fully intend to pursue the public markets when timing and conditions best support our long-term vision," Liftoff added.

The company was targeting a valuation of up to $5.17 billion in its U.S. listing, aiming to raise up to $762 million.

For Blackstone, the delay marks a hiccup in what the firm has called "one of the largest IPO pipelines" in its history.

Silicon Valley has for decades pursued a software-as-a-service business model for commercial scale, making software a major allocation in the portfolios of several alternative asset investors, whose private credit portfolios also include loans to the sector.

Earlier on Thursday, KKR KKR.N, Blue Owl OWL.N, and Ares Management ARES.N disclosed that software assets accounted for 6% to 8% of their portfolios, while their leaders expressed confidence in asset quality despite the market meltdown.

Still, with IPO markets still recovering from a years-long lull, Liftoff's pause could spark soul-searching in several boardrooms that might have been eyeing a listing this year.

Liftoff provides mobile app developers with tools to acquire users and grow their businesses. The platform has roughly 1.4 billion daily active users worldwide.

In 2021, Blackstone BX.N combined its portfolio companies Liftoff and Vungle to form ‍Liftoff Mobile, which has grown rapidly under CEO Jeremy Bondy.

Bloomberg first reported the plans. Blackstone did not immediately respond to our requests for comment.