In related news:
AppLovin is buying video game company Unity for $17.5 billion
Unity Software has reportedly rejected a $17.54 billion buyout offer from AppLovin today. Unity Software also announced that it will proceed with its previously announced acquisition of ironSource, a mobile app monetization Software company.
Currently, Unity Software provides a leading global gaming Software platform for creating and operating interactive, real-time 3D content. AppLovin, on the other hand, provides the necessary services and tools for game developers to acquire new users, monetize games, and optimize app store rankings with analytics tools.
On Wednesday, AppLovin made a tender offer for Unity Software, proposing to acquire the company in an all-stock deal valued at $17.54 billion. Upon completion of the transaction, Unity Software will own 55% of the outstanding shares of the new company, representing 49% of the voting rights.
Unity Software said at the time that its board would evaluate AppLovin's offer. Today, Unity Software rejected AppLovin's offer.
Unity Software said AppLovin's proposal was not in the best interests of the company's shareholders. Furthermore, the proposal would prevent Unity Software from receiving a "superior offer" in the future. Unity Software's reference to "superior offer" refers to the possible outcome of the merger with IronSource.
Last month, Unity Software announced the acquisition of Israeli company ironSource in a $4.4 billion all-stock deal. IronSource is Israel's largest Internet company that helps mobile content developers expand their application businesses.
As originally planned, the transaction would close in the fourth quarter of this year, after which ironSource would be integrated into a wholly-owned unit of Unity Software. But according to AppLovin's proposal, the Unity Software board would have to terminate the ironSource deal if it wanted to pursue a merger with AppLovin.
"The board continues to believe that the IronSource transaction is attractive and provides an opportunity to create long-term value," John Riccitiello, Unity Software's chief executive, said in a statement today.
AppLovin has yet to comment.