Engine maker Unity (opens in new tab)has officially rejected a takeover offer from AppLovin. The tech company, known for its mobile marketing and analytics platforms such as AppDiscovery and SparkLabs, had previously offered (opens in new tab)$17.54 billion to buy the well-known software developer whose engine has powered games like Kerbal Space Program and Pillars of Eternity.
The offer was made on the condition that Unity drop its own $4.4 billion offer to buy ironSource, a Tel Aviv-based company that is a competitor of AppLovin. But in a statement, Unity chief executive John Riccitiello said. “The board of directors continues to believe that the ironSource transaction is compelling and will provide an opportunity to generate long-term value.” Unity itself added that AppLovin’s offer “would not reasonably result in a ‘Superior Proposal’ as defined in Unity’s merger agreement with ironSource.”
That deal, now believed to go ahead as planned, is expected to close in the fourth quarter of this year. This isn’t the only deal Unity has struck recently. Last week, the company signed a “multi-million” dollar contract (opens in new tab) to cooperate with US government defense despite reports of dissatisfaction with Unity’s military ties midway through last year.
ironSource, meanwhile, is known for developing InstallCore, a wrapper for bundling software installations that are so notoriously obnoxious (opens in new tab) that it is treated as malware by programs like Windows Defender and Malwarebytes. Unity’s interest in ironSource stems from her interest in expanding its stake in mobile advertising, with plans to “take advantage of the company’s tools, platforms, technology and talent to form an end-to-end platform that allows creators to more easily create, publish, run, monetize and grow live games”.