AppLovin Puts Forward $20 Billion Offer to Buy Unity
AppLovin Corp, a provider of gaming software, launched a $17.54 billion all-stock bid to purchase Unity Software Inc on Tuesday, endangering Unity’s previously disclosed plans to acquire AppLovin’s rival IronSource.
When compared to Unity’s Monday closing price, AppLovin’s offer of $58.85 for each share indicates an increase of 18%. Unity will have about 49% of the voting rights and possess 55% of the outstanding shares of the merged firm.
Adam Foroughi, AppLovin CEO commented on the proposal saying:
“We believe that together, AppLovin and Unity create a market-leading business that has tremendous growth potential.”
According to the planned merger, AppLovin CEO Adam Foroughi would serve as the chief operating officer and John Riccitiello, CEO of Unity, will serve as CEO of the merged company. Unity stated that its board will review the proposal. On Tuesday, the corporation is expected to release its profits after the bell.
The offer from AppLovin comes as game developers and console manufacturers warn of a decline in the industry as gamers turn to outdoor activities due to decades-high inflation and the relaxation of COVID-19 rules. On Tuesday, the business cut its sales forecast. By the end of 2024, according to Foroughi, the merged business may earn an adjusted operating profit of over $3 billion.