Unity declines AppLovin offer in favor of ironSource merger

by Adam Fitch · ${ (new Date("2022-08-15T13:47:00+00:00")).toLocaleString(userLocale, { timeZone: userTimezone, dateStyle: "short", timeStyle: "short" }) }}
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Unity declines AppLovin offer in favor of ironSource merger
Unity

Unity has officially declined an unsolicited offer for a merger with AppLovin, recommitting to its existing plan with ironSource.

The proposal: It seemingly came out of nowhere.

  • AppLovin came in with an unsolicited offer to merge with Unity on August 9.
  • The proposal included an all-stock deal that would, according to AppLovin's estimates, boost the combined company's earnings by more than $500M in 2024 and $700M in 2025.
  • Unity has now responded to the offer, confirming that it is committed to seeing through a deal it already had in place with ironSource.
  • “The Board continues to believe that the ironSource transaction is compelling and will deliver an opportunity to generate long-term value through the creation of a unique end-to-end platform that allows creators to develop, publish, run, monetize, and grow live games and real-time 3D content seamlessly," said Unity CEO John Riccitiello.

Original plans: Unity already has a deal in place for a merger.

  • Announced in July, Unity is planning to merge with ironSource in an all-stock deal.
  • Once closed, ironSource will be valued at $4.4B and operate as a subsidiary of the software developer.
  • "Beyond our platform, we expect the combination of our business with ironSource to transform Unity’s financial profile to that of a highly profitable and free cash flow positive company," said Unity Chief Financial Officer, Luis Visoso at the time of the announcement.