It would be an important deal for the gaming sector.
IronSource is an ad mediation platform for app developers, and Unity Software is one of the most popular development engine and publisher. It would be a $4.4 bn deal. Both companies are public. As a part of the transaction, Silver Lake and Sequoia, the two largest Unity shareholders, will invest $1 bn in Unity in the form of convertible notes after the transaction closes.
And now, 2 weeks later app growth and monetization agency AppLovin submitted an unsolicited proposal to buy Unity in a deal worth $20bn under the condition Unity would have to terminate its deal IronSource, an AppLovin competitor.
For Unity merger with IronSource or AppLovin solves the same task – maximization of tools to grow and monetize their apps for Unity’s developers. The situation shows that the sector is hot and its potential is not yet fully unlocked.
Also, Reuters reports that Unity struck a $1 bn deal to create a joint venture in China. Partners in this venture, which will be called Unity China, include tech giants like TikTok parent ByteDance, Alibaba and more. The deal will help Unity develop local versions of its products for game developers.