Unity Software rejected a €17.2 billion acquisition bid from AppLovin. The software developer is pursuing the merger of ironSource, one of AppLovin’s competitors.
Unity develops an engine for game developers. The software allows developers to produce video games without having to program complex models for gravity and realistic lightning.
Unity Software made a $4.4 billion (about €4.3 billion) bid for ironSource in July 2022. IronSource provides services that help game and app developers earn ad revenue. Unity Software has a large user base of game developers. The acquisition of ironSource allows Unity Software to offer its services to existing users.
IronSource is one of AppLovin’s competitors. AppLovin also helps game developers earn ad revenue. The merger of Unity Software and ironSource creates a strong competitor for AppLovin. In response, AppLovin made a $17.5 billion (about €17.2 billion) bid for Unity Software. Unity Software recently announced it won’t accept the bid.
The future of Unity Software
Unity Software intends to remain publicly traded and continue its acquisition of IronSource. “The Board continues to believe that the ironSource transaction is compelling and will deliver an opportunity to generate long-term value”, Unity Software CEO John Riccitiello said in a statement. IronSource’s share price rose by 17 percent after the announcement.
Unity was used to develop numerous successful games, including Pokemon Go, Hearthstone and Rust. In addition to game development, the software is popular for digital twins and video simulations. IronSource provides multiple services for app promotion and ad publishing. The organization helps app developers find new users and advertisers.