Game development platform Unity has rejected a large takeover bid from mobile technology firm AppLovin.
AppLovin offered to acquire Unity in an all-stock deal worth $17.5 billion. However, the offer came with the stipulation that Unity drops its own bid for ironSource.
IronSource and AppLovin both offer services to help developers grow and monetise their apps.
Unity’s acquisition of ironSource would provide the latter with a significant advantage in both exposure and resources. AppLovin’s bumper offer to purchase Unity appears to have been a strategic attempt to block the ironSource deal.
Today, Unity has said that it’s committed to acquiring ironSource.
John Riccitiello, President and CEO of Unity, said:
“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, monetise, and grow live games and real-time 3D content seamlessly.
We remain committed to and enthusiastic about Unity’s agreement with ironSource and the substantial benefits it will create for our shareholders and Unity creators.”
Riccitiello caused a stir last month in an interview about Unity’s acquisition of ironSource when he called some game developers “the biggest fucking idiots.”
Unity’s CEO apologised for his comments but a number of game developers have already said they’re moving to other platforms – or are considering doing so – for not just Riccitiello’s comment, but wider concerns about the lack of improvements to the company’s engine.
Unity believes that its acquisition of ironSource will “drive better economic outcomes for customers by bringing together the Unity game engine and editor, Unity Ads, and the rest of Unity Gaming Services (UGS) with ironSource’s best-in-class mediation and publishing platforms.”
(Photo by Tim Mossholder on Unsplash)
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