Unity (U) just published a press release officially rejecting AppLovins (APP). The unsolicited offer was made last week on the same day as Unity's Q2 earnings where management acknowledged the offer, but refused to comment further upon it.
Unity closed last week at $58.49 per share, just a few shares off the proposed $58.85 AppLovin had offered in the deal. As Unity is the larger of the two companies, the deal would in actuality have been a merger with AppLovin as the lesser part of the new entity, and Unity CEO Riccitiello staying as CEO.
The deal was not well received by shareholders of Unity, but interestingly it was dependent on the cancelation of Unity's plans of merging with AppLovin competitor ironSource (IS).
The ironSource merger has also received its fair share of criticism, but in my opinion, AppLovin's offer made it out to seem stronger, as the move came off as a desperate one over worries of a combined Unity and ironSource.
Read my in-depth thoughts on all of this as a long-term Unity shareholder right here.
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