Game engine major 'Unity' receives acquisition offer of 2.37 trillion yen, Unity considers proposal



On August 9, 2022, AppLovin, an American mobile technology company that handles games and app advertisements for mobiles, announced Unity, which is famous for the game engine `` Unity '' used in the development of `` Genshin Impact '' and `` Pokemon GO ''. Announced that it has presented an acquisition proposal for Software for $ 17.54 billion (about 2.37 trillion yen).

AppLovin Submits a Compelling Non-Binding Proposal to Combine with Unity | Business Wire

https://www.businesswire.com/news/home/20220809005530/en/AppLovin-Submits-a-Compelling-Non-Binding-Proposal-to-Combine-with-Unity

AppLovin offers to buy video game software maker Unity in $17.5 bln deal | Reuters
https://www.reuters.com/markets/deals/applovin-offers-buy-unity-software-2022-08-09/

AppLovin offers to merge with Unity: it's musical chairs on mobile | Mobile Dev Memo by Eric Seufert
https://mobiledevmemo.com/applovin-offers-to-merge-with-unity-its-musical-chairs-on-mobile/

AppLovin gave Unity a non-binding takeover plan to buy shares for $58.85 per share, an 18% premium to the company's August 8 stock price, which is a legally binding deal. announced its intention to acquire the company. AppLovin plans to own 45% of Unity's outstanding shares and 51% of its voting rights.



What is particularly noteworthy about this acquisition proposal is that it is conditional on the cancellation of the acquisition of ironSource

announced by Unity in July 2022.

According to Reuters, Unity replied that the proposal would be evaluated by the board of directors. AppLovin CEO Adam Foroughi said in a statement: 'We believe that together AppLovin and Unity will create a business that will lead this market with tremendous growth potential. I am confident,' he said.

Reuters also reports that Unity has signed a $ 1 billion (about 135 billion yen) contract with Alibaba Group, OPPO, TikTok's ByteDance, etc. to establish a joint venture in China.


by JR Salazar

Behind the intensifying movement of reorganization in the game industry, there is a sense of caution that the growth of the game industry will slow down due to inflation progressing at a historic pace and an increase in outdoor orientation due to deregulation of the pandemic.

Mobile Dev Memo, which covers mobile market news, said of the proposed acquisition, 'The merger of AppLovin and Unity will unlock synergies in Unity's game engine business, and a more fully horizontal integration than we could have hoped for in a merger with ironSource. It has the potential to lead to the emergence of a new company.”

On the other hand, Michael Pachter, an analyst at the investment firm Wedbush Securities, said, ``The price offered to Unity appears to be well below the company's intrinsic value, which is why Unity is proposing. I expect you to refuse to do so.'

in Game, Posted by log1l_ks