Last week, AppLovin Corp made an offer to buy Unity Software Inc in an all-stock deal that would have been worth $17.5 billion, on the condition that Unity drop its own bid for competitor IronSource. Today, Unity announced that it is rejecting AppLovin’s offer and is going ahead with the purchase of IronSource, Reuters reports.
Both IronSource and AppLovin offer services that help developers grow and monetize their apps. A market analyst quoted by Reuters noted that Unity could likely get more than one takeover bid, and that AppLovin’s bid was likely a hasty move to prevent the sale of IronSource.
Unity’s free game engine is used by game developers large and small, with some of the biggest titles developed on its engine, including Call of Duty: Mobile and Pokemon Go. Tel Aviv-based IronSource isn’t the only company Unity has had its eye on recently, having recently spent $1.625 million acquiring visual effects studio Weta Digital.
In a recent interview about the merger with IronSource, Unity CEO John Riccitiello received backlash for calling developers “fucking idiots” for not considering monetization. He has since apologized for the comment, though Unity has had other controversies this year, including laying off more than 200 employees.
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