$17.5 Billion Acquisition Offer Made For Video Game Software Dev Unity
There's always a bigger fish.
AppLovin Corp made an offer today to purchase Unity Software Inc for $17.54 billion in an all-stock deal. The deal, should it go through, would be the latest in a series of massive acquisitions within the games industry.
According to a report from Reuters, AppLovin will offer $58.85 for each Unity share, at a premium of approximately 18%. As proposed, Unity will maintain ownership of 55% percent of the remaining shares. In turn, those shares represent about 49% of the company's voting rights. AppLovin CEO stated that the deal would lead to massive profits, promising to achieve an adjusted operating profit of $3 billion by 2024. There has been no response from Unity yet, but the company will release its latest quarterly earnings report later today.
Unity is best known for making and maintaining the game engine of the same name. Unity is used in massive games like Call of Duty: Mobile and Pokemon Go, as well as in a multitude of indie projects. AppLovin helps mobile app developers and publishers monetize and advertise their applications, including many video games.
The acquisition offer comes shortly after controversy for the massive video game software company. In July, Unity CEO John Riccitiello harshly criticized developers who don't consider monetization. The statement caused immense backlash and Riccitiello later apologized. Employees have also criticized the company for taking contracts with the Department of the Defense. Unity has also made acquisitions of its own, acquiring VFX studio Weta Digital and laying off over 200 workers before buying IronSource.
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