US mobile marketing network AppLovin in today’s press release put forward Offer to buy multi-platform game engine maker Unity for $17.54 billion
AppLovin is ready to pay $58.85 for Unity shares, which is 18% higher than their value at the end of stock trading on August 8th. Unity shareholders will receive 55% of the combined company’s securities, but only 49% with voting rights.
AppLovin CEO Adam Foroughi believes that by joining forces, AppLovin and Unity will be able to become market leaders and achieve over $3 billion in operating profit by the end of 2024.
Adam Forughi (image source: AppLovin)
The merger of the two companies, AppLovin says, will result in significant increases in revenue, cash flow and operational efficiency that would be beyond what might be achieved on their own.
In addition, developers would also benefit from the merger, who would be able to take their application from the concept stage to commercialization without barriers and with a greater level of optimization, scale and efficiency.
As a result of the merger, current Unity CEO John Richitello is proposed to be the head of the combined company (image source: VGC)
The Board of Directors of AppLovin unanimously supported the proposal to purchase Unity and is confident in its success, but has a condition – the engine manufacturer refuses to union with controversial software developer ironSource.
How the portal transmits AxiosUnity’s AppLovin proposal has already been received and is being prepared “in detail” consider it. On the night of August 9-10, Unity is set to submit its quarterly report and will likely receive a few questions regarding the situation.
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