Unity rejects Applovin’s proposal and goes with ironSource merger

The video game software maker goes ahead with ironSource and declines Applovin’s offer.
Unity Ironsource Apploving logos

The video game giant and software maker Unity believes merging with ironSource is the better deal and rejects Applovin’s $20 billion valued takeover proposal.

The Unity board announced financial earnings for Q2 2022 last week, and the company CEO John Riccitiello said “They won’t make any comments at this time.”, however, Unity’s CFO Luis Felipe Visoso kind of blurted out what is official now by saying “We’re confident that the ironSource merger will make us stronger.

Today, the Unity board shared the following statement through the company CEO Riccitiello:

“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.”

While Applovin’s offer seemed like the better deal out of the two options, it would also have Applovin hold the 51% of the outstanding voting rights. Merging with ironSource on the other hand gives more control to the Unity side. In the end, Unity Board decided that merging with ironSource is the “superior” option compared to Applovin’s proposal.

The ironSource side is still committed to completing the merger with Unity, and both companies expect the merger to finalize within this year, most likely in the fourth quarter.

Meanwhile, Unity has been expanding to China to supercharge its growth and the company recently made a new partnership deal with Microsoft.

Next: Unity lands a multimillion-dollar defense contract with the US government

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