Unity's board of directors unanimously rejected the merger proposal made by AppLovin. The company had offered $17.54 billion to merge its activities with the developer of the popular engine, becoming one of its parent companies in the process. The decision to blend with another company is the reason for the proposed denial.
In a message released by Unity, the company said that a merger with AppLovin "did not serve the best interests" of its shareholders. With the decision, Unity is expected to continue to progress its merger process with IronSource, which it considers "attractive" and will "deliver an opportunity to generate long-term value."
To that end, the companies intend to create a platform through which developers can develop, publish, manage and monetize their games. “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.” Said CEO John Riccitiello.
What exactly is AppLovin?
AppLovin, founded in 2012, is a company with many similarities to IronSource, specializing in the development of monetization solutions for games, particularly those designed for mobile platforms. Although its offer is for more money than IronSource's, the fact that it would gain control of Unity as part of a possible deal may have been a factor in the denial.
The offers for the engine developer come as the company continues its aggressive expansion and formation of new partnerships. According to Reuters, the company has recently begun its growth in China in collaboration with companies such as Alibaba Group, China Mobile, Oppo, and Bytedance.
Unity also recently announced a new agreement with the US Department of Defense to develop simulations of aerospace systems. Unity sees expanding its activities into other sectors as an important part of its future, in addition to continuing to invest in the world of games.
Do you think this was a smart move from Unity? Let us know in the comments!
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