Skip to main content

Unity rejects proposed takeover by AppLovin

The Unity logo on a phone in front of the Unity logo on a wall.
(Image credit: SOPA Images / Getty)
Audio player loading…

Engine creator Unity (opens in new tab)has officially rejected a takeover offer by AppLovin. The tech firm, known for its mobile marketing and analytics platforms like AppDiscovery and SparkLabs, had previously offered (opens in new tab)$17.54 billion to buy the well-known software developer, whose engine has powered games like Kerbal Space Program and Pillars of Eternity.

The offer was made on condition that Unity drop its own $4.4 billion bid to purchase ironSource, a Tel Aviv-based company that is a rival to AppLovin. But in a statement, Unity CEO John Riccitiello said. "The board continues to believe that the ironSource transaction is compelling and will deliver an opportunity to generate long-term value." Unity itself further added that AppLovin's offer "would not reasonably be expected to result in a 'Superior Proposal' as defined in Unity's merger agreement with ironSource."

That deal, which will now presumably continue as planned, is expected to close in Q4 this year. This isn't the only deal Unity has made recently. Last week, the company signed a "multi-million" dollar contract (opens in new tab) to work with US Government Defense, despite reports of dissatisfaction with Unity's military affiliations emerging in the middle of last year.

ironSource, meanwhile, is known for developing InstallCore, a wrapper for bundling software installations so infamously obnoxious (opens in new tab) that it's treated as malware by programs like Windows Defender and Malwarebytes. Unity's interest in ironSource stems from its interest in expanding its stake in mobile advertising, with plans to harness "the company's tools, platforms, technology, and talent to form an end-to-end platform that enables creators to more easily create, publish, run, monetize, and grow live games".