Last week, Unity received a surprise acquisition offer, with mobile-focused company, AppLovin, offering $17.5 billion. There's just one problem, the merger would mean that Unity would have to cancel its previously announced deal to acquire IronSource. After talking it over, Unity has decided to go ahead with its original plans.
AppLovin made the offer last week, presenting an all-stock deal currently worth just over $17.5 billion. The Unity board evaluated the offer last week and has now announced that it will not be going ahead with the AppLovin merger, and will instead go ahead with its plans to acquire IronSource to bolster its mobile business.
In the announcement, Unity reiterates that AppLovin's offer was unsolicited. John Riccitiello, President and CEO of Unity, explained that the board believes that the IronSource acquisition is “compelling and will deliver an opportunity to generate long-term value”.
Ultimately, the board deems the IronSource acquisition as the most beneficial option for the company and shareholders. AppLovin has not responded.
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KitGuru Says: Unity will be staying as-is for now. The company also recently secured a government contract and entered a partnership with Microsoft, in addition to its on-going acquisition of IronSource, so the timing did seem odd for a potential buyout.