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AppLovin offers to buy video game software maker Unity in $17.5 billion deal
By Arghyadeep Dutta - Aug 09, 2022, 11:29 AM ET
Last Updated - Mar 13, 2024, 11:28 AM EDT
Gaming software company AppLovin Corp (NASDAQ: APP) on Tuesday made an offer to buy Unity Software Inc (NYSE: U) for $17.54 billion to tap into growing demand for three-dimensional gaming
Gaming software company AppLovin Corp (NASDAQ: APP) on Tuesday made an offer to buy Unity Software Inc (NYSE: U) for $17.54 billion to tap into growing demand for three-dimensional gaming.
AppLovin and Unity make software to design video games, which has been expanding to new technologies and coping with metaverse or immersive virtual worlds.
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Unity’s software has been used to build some of the most popular games, like “Call of Duty: Mobile” and “Pokemon Go”, while AppLovin helps developers grow and monetize their apps.
Palo Alto-based AppLovin said in an all-stock deal it would value Unity at $58.85 per share and $20 billion enterprise value, representing an 18% premium to Unity’s Monday closing price.
Under the proposed deal, Unity will own 55% of the combined company’s outstanding shares, representing about 49% of the voting rights.
AppLovin CEO Adam Foroughi said the combined company will have the potential to generate an adjusted operating profit of over $3 billion by the end of 2024.
“Unity is one of the world’s leading platforms for helping creators turn their inspirations into real-time 3D content,” Foroughi said.
AppLovin, which is backed by KKR and Co (NYSE: KKR), went public last year amid the surge in demand for video games from people staying at home due to the COVID-19 lockdowns.
Picture Credit: Bloomberg
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