Unity turns down Applovin's $20 billion merger proposal gadgetsrow.com

Unity turns down Applovin’s $20 billion merger proposal

The board of directors of gaming company Unity Technologies unanimously rejected Applovin’s $20 billion merger proposal. The Board recognized that the proposal is not in the best interest of unity and lacks sufficient information to make an informed decision.

Unity rejected Applovin’s $20 billion merger proposal, saying they were not compatible and had different visions for their future. Unity wants to focus on its own business model rather than diversifying its efforts to create more content for other platforms.

Instead, the Unity board has approved the $4.4 billion acquisition of IronSource, a competitor of AppLovin. Unity CEO John Ricitello said that “the Board believes the IronSource transaction is compelling and will provide an opportunity to generate long-term value through the creation of a unique end-to-end platform that allows creators to develop their products, Enables you to publish, manage and manage more services”.

On the other hand, Applovin CEO Adam Forofi said the board of directors unanimously agreed to reject Unity’s proposal. “We believe that our standalone strategy provides the best opportunity for long-term value creation for our shareholders,” he said. Ekta responded to AppLovin with an official letter, saying she was disappointed with his decision and would continue to consider all options available to him.

Shares of Unity fell 7.5% on the same news, while AppLovin lost 4%. Unity also authorized a $2.5 billion share buyback approximately 24 months after the merger.

AppLovin is a mobile advertising company that focuses on in-app advertising. Unity is the biggest game developer in the world with the most popular games in the world. The two companies have been working together for years and Unity has also invested $5 million in Applovin.

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