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AppLovin offers $17.5 billion to acquire Unity (U) [UPDATED]

We'll see if Unity is AppLovin' the $17.54 billion all-stock deal offer that's currently on the table.

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Update (8/15/22): Unity’s board of directors has reaffirmed its commitment to its acquisition of ironSource and has rejected the “unsolicited proposal” from AppLovin.


Original Story: Following recent news updates for Unity including how the CEO recently apologized for comments made in regards to mobile game monetization, and the announcement that Unity is partnering with Microsoft Azure, it’s been revealed that gaming software company AppLovin Corp has made an offer to purchase Unity for $17.54 billion in an all-stock deal.

As noted by outlets like Reuters, not only is this deal significant, it also potentially threatens to derail Unity’s previous plans to purchase AppLovin’s competitor, ironSource, in a $4.4 billion all-stock purchase. According to the most recent proposal, Unity would need to terminate the ironSource purchase if it wishes to follow through with AppLovin’s offer.

Graph for Unity stock showing shares at $49.87 and up 0.22 percent.
© Google Finance

Currently, AppLovin is offering $58.85 per Unity share, which is at a premium of 18 percent of Unity’s closing price. Should the deal go through, Unity would own 55 percent of the company’s combined outstanding shares, and would retain 49 percent of the voting rights. Additionally, Unity CEO John Riccitiello would not only retain his position as CEO, but would serve as CEO for both businesses, including AppLovin.

This would transition AppLovin’s current Chief Executive, Adam Foroughi, to the role of Chief Operating Officer. As of right now, Unity’s board is evaluating the offer, though industry experts have noted the chances of the deal going through are slim.

Graph for Applovin stock showing shares at $35.67 down 11.15 percent.
© Google Finance

Shares for AppLovin fell 11 percent in light of the acquisition offer, ironSource shares fell 9 percent, while shares for Unity were up by less than 1 percent. For more Unity news, be sure to read through some of our previous coverage including why Unity CEO John Riccitiello apologized for comments regarding mobile monetization, and Unity’s recent partnership with Microsoft Azure.

Senior Editor

Morgan is a writer from the frozen wastelands of Maine who enjoys metal music, kpop, horror, and indie games. They're also a Tetris fanatic who's fiercely competitive in games like Tetris 99... and all games in general. But mostly Tetris. You can follow Morgan on Twitter @Author_MShaver.

From The Chatty
  • reply
    August 9, 2022 10:20 AM

    Morgan Shaver posted a new article, AppLovin offers $17.5 billion to acquire Unity (U)

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      August 9, 2022 11:13 AM

      Ad companies buying game engines the future is depressing.

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        August 9, 2022 11:25 AM

        yeah this is just not going well overall. the digital space is a race for aggressive data mining and harvesting

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        August 9, 2022 12:04 PM

        Right up there with dot coms naming bowl games or crypto companies buying stadium naming rights

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      August 9, 2022 11:17 AM

      I don’t understand why Microsoft doesn’t just buy Unity. It’s a good fit for them.

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        August 9, 2022 11:23 AM

        Unity is a crap tech lol and MS has way better

        MS has the id team, Bethesda, the Forza tech, a good relation with Asobo studio and Epic.

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          August 9, 2022 11:45 AM

          it's an engine, of course everyone who works with it hates it, that's true for any tool you work with long enough...

          but I dont understand that trend of gamers (or youtubers lol) dissing game engines (mainly unity afaict). if a game's bad, it's because it's bad, not because of the engine. loads of amazing games have been made with unity. it's a damn tool.

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            August 9, 2022 11:58 AM

            Been going on for a long time.

            It's why some companies are so selective (or were) about who can license their engine.

            Back in the day if you wanted to license id Tech you had to have a proven track record as a developer. Famously some dude who was a hardcore mapper/modder got some investors together to license id Tech 4 to make a game and id wouldn't let him, he had no game shipping experience (I guess they formed this policy some time after licensing id Tech 2 to Valve which had never shipped a game before)

            Around the same time Monolith was licensing LithTech out to anyone who could pay, which created lots of shitty games on the market. Gamers scoffed "eh, don't bother with this one, it's just another shitty LithTech game..."

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            August 9, 2022 12:04 PM

            It's a tendency as old as quake vs unreal.

            The irony is that most gamers are completely ignorant to the technical aspects of game development and don't really grasp what a game engine does. You'll regularly see people blame art direction or the quality of art assets on the engine.

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              August 9, 2022 12:08 PM

              I fully predict that Starfield, TES6 and F5 will all be on an evolution of the Gamebryo fork used for all their existing games, hardcore gamers will piss and fucking moan about it and blame it for every gameplay issue, and the rest of the gaming public will just buy it in millions of copies across all the platforms.

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          August 9, 2022 11:52 AM

          I figured it would be right up their alley seeing as how it's all in .NET and it would cement people in their technologies.

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          August 9, 2022 12:05 PM

          what unity has though is marketshare, like 95% of indie games are unity. ease of use and a strong community where you can google your way out of problems. its not as clean as unreal but it gets the job done, and it could get even better if a real company like microsoft steered them straight

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            August 9, 2022 12:09 PM

            It seems like Unreal is the engine you go to if you need something pretty and Unity is what you use if you have more basic needs and also want to run on all the platforms and use an engine not in litigation with two of them.

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            August 9, 2022 12:09 PM

            which is probably why an ad company is racing to buy it first

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          August 9, 2022 1:10 PM

          I don't know, this is pretty impressive IMO: https://www.youtube.com/watch?v=eXYUNrgqWUU

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      August 9, 2022 12:02 PM

      from what I understand, Unity is only worth it for their ad delivery tech. they are more about ad delivery through free games than their engine and share ad revenues with game makers. nothing like Unreal at all, they have a completely different business model.

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