AppLovin Offers To Buy Unity Software For $17.5B in All-Stock Deal

Mobile app marketing company AppLovin on Tuesday made a $17.54 billion all-stock offer to buy online gaming business Unity Software. From a report: Palo Alto-based AppLovin said the deal would have an enterprise value of about $20 billion, an 18% premium on San Francisco-based Unity's Monday closing price. AppLovin said in a news release that its offer would create a company with a combined market cap of about $35 billion. The non-binding offer appears to be aimed at warding off potential damage to AppLovin's business by a plan Unity announced about a month ago to buy Israel-based app monetization company ironSource for $4.4 billion. A number of Unity shareholders and game developers have reportedly expressed dissatisfaction with the IronSource deal, which may help AppLovin win support for its offer. While Unity investors would hold 55% of shares in the combined company, AppLovin's would have 51% of the voting power. Unity chief John Riccitiello would be CEO under the proposal and AppLovin chief Adam Foroughi would be chief operating officer. A Unity spokesperson acknowledged the offer in a neutral statement the company issued on Tuesday morning, saying, "We have received the offer from AppLovin and our board will thoroughly evaluate it."

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