Published , by Morgan Shaver
Published , by Morgan Shaver
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.
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.
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.