AppLovin abandons Unity merger deal effort
After an unsolicited offer aimed at undercutting Unity's merger with a competitor, AppLovin has rescinded its proposed deal.
One of the weirder recent stories to come out of the tech industry was easily mobile technology company AppLovin trying to snipe Unity with a deal that would have demanded the latter not merge with competitor IronSource. Unity shot down AppLovin’s proposed deal very shortly after it was proposed to move forward with IronSource. Since then, AppLovin has announced it will cut its losses and move on from dealings with Unity.
AppLovin announced its decision to rescind its deal proposal to Unity and abandon efforts to disrupt the Unity and IronSource merger on September 13, 2022, as reported by GamesIndustry.biz.
“AppLovin saw potential in combining its profitable business model and machine-learning capabilities with Unity’s Create platform," Applovin shared in a statement on the matter. "The opportunity was even more interesting given the market headwinds facing the industry. Following careful consideration, AppLovin concluded that its path as the independent market leader is better for its stockholders and other stakeholders. AppLovin will move forward with the intention of continuing to gain market share and expand its platform."
This decision comes after AppLovin made an offer to buy out Unity to the tune of $17.5 billion USD. The deal would have seen Unity shareholders receive 55% of shares under the banner of the combined company. However, it also stipulated that Unity cease its ongoing merger with IronSource, which is a direct competitor to AppLovin. Unity shot the AppLovin proposal down less than a week after it was submitted in favor of continuing its merger with IronSource.
AppLovin may have been left in the dust on this particular venture, but the company still has a prominent place in mobile app technology. It’s likely not the last we’ll hear of it making or attempting to make major moves such as the Unity merger proposal.
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