AppLovin proposes to combine with Unity for about $17B

AppLovin, the mobile monetization platform, today announced it has submitted a non-binding proposal to Unity. Offering to “combine” with Unity, it’s more of a proposed acquisition for what would amount to about $17 billion.

The proposal is for an all-stock deal valuing Unity’s stock at $58.85 per share, an 18% premium to Unity’s Monday closing price. Current Unity shareholders would receive 55% of the shares of the post-marriage company, which would equal 49% of the voting rights.

There’s one stipulation. Unity would have to terminate its planned acquisition of Ironsource, one of AppLovin’s competitors. The company intended to use Ironsource’s tools to give its creators more options to monetize their creation.

AppLovin has acquired more than a few companies in the last few years. It acquired mobile ad firm MoPub from Twitter last year for $1.05 billion and mobile game developer Machine Zone in 2020. Adam Foroughi, AppLovin CEO, said in a statement, “Over the last decade we have built and operated a leading and innovative company in mobile app marketing and monetization solutions … . With the scale that comes from unifying our leading solutions and innovation that would be achieved with the combination of our teams, we expect that game developers would be the biggest beneficiaries as they continue to lead the mobile gaming sector to its next chapter of growth.”

Unity has not yet responded to the proposal.