Applovin is a Controlled Entity With Significant Insider Ownership

We are doing research on a company, Applovin. We learned that corporate control is centralized in three entities. This makes them a Controlled Entity. They also have a few insiders (5 workers and 2 investors) that hold 85% of the common stock. Another two ‘independent’ investors hold or held 14%, and Silicon Valley Bank’s wealth management arm held 4% before they were restructured.

“Governance risk is a key consideration with ownership and control,
board oversight and effectiveness, and management being key
considerations. AppLovin is a controlled company under NASDAQ
corporate governance requirements with Adam Foroughi (co-founder,
CEO, and Chairperson), Herald Chen (President and CFO), and KKR
Denali Holdings, L.P. (KKR Denali) holding all outstanding Class B
super voting common shares (20 votes per share) which provides
roughly 93% voting control. AppLovin relies on NASDAQ controlled
company exemptions to avoid certain corporate governance
requirements. Accordingly, shareholders of AppLovin are not
afforded the same protections as shareholders of other
NASDAQ-listed companies with respect to corporate governance.” Source Here.