Mobile software company AppLovin has offered to buy Unity for $17.5 billion.
According to Portal, the mobile software developer from Palo Alto, California, has made an all-stock offer for Unity – the company behind the popular Unity engine that has been used to create games as diverse as Call of Duty: Mobile and Pokemon Go. Unity had previously planned to acquire AppLovin competitor ironSource.
AppLovin reportedly offered $58.85 for each Unity share — an 18% premium to Unity’s closing price on Monday. Unity would own 55% of the combined company’s outstanding shares, giving Unity 49% voting rights going forward.
“Unity is one of the world’s leading platforms for helping creators turn their inspirations into real-time 3D content,” said Adam Foroughi, CEO of AppLovin, in an official statement. “Given the scale to come from the unification of our leading solutions and innovation that would be achieved by combining our teams, we expect game developers to be the biggest beneficiaries as they continue to propel the mobile gaming sector into its next growth chapter.” to lead. ”
Unity has confirmed that its board of directors will review APpLovin’s offer. Meanwhile, Unity reported quarterly revenue of $297 million — a 9% year-over-year increase given recent layoffs.
John Riccitiello, CEO of Unity, recently drew the ire of fellow developers when he called developers who aren’t focused on monetization “the biggest damn idiots.” He then had to apologize for his comments.
A buyout of AppLovin, which focuses on monetization software for mobile games, would propel Unity further down the monetization path.
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