AppLovin drops efforts to buy Unity after $20 billion offer rejected

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The AppLovin logo is seen at the company’s booth a day before the China Digital Entertainment Expo & Conference (ChinaJoy) at the Shanghai New International Expo Center on August 1, 2019 in Shanghai, China.

CGV | Visual Group China | Getty Images

Game developer AppLovin said it was abandoning efforts to buy Unity.

After Unity shareholders rejected the $20 billion offer last month, AppLovin said Monday it would not submit another proposal to acquire the video game software company.

“After careful consideration, AppLovin has concluded that its path as an independent market leader is better for its shareholders and other stakeholders,” the company said.

In early August, AppLovin offered to buy Unity for $58.85 per share, a premium of around 18% to the previous day’s closing price. Unity responded by saying the deal was “not in the best interest of Unity shareholders”. Instead of accepting that offer, Unity recommended shareholders vote in favor of its own proposed $4.4 billion acquisition of mobile advertising technology company IronSource, which was agreed to in July.

With AppLovin’s proposal, Unity should have abandoned the IronSource deal. It would also have made Unity CEO John Riccitiello the CEO of the combined company.

“We remain excited about the long-term growth potential of our core markets and AppLovin,” CEO Adam Foroughi said in the statement. “Our experienced and dedicated team will continue to focus on what we can control, including continuously improving our products and technology and expanding into new high-growth markets.”

LOOK: AppLovin’s proposal probably wasn’t better for Unity

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