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Unity plummets on the stock market after rejecting AppLovin’s merger offer

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The gaming software maker Unity has rejected this monday the merger offer made by AppLovin, and valued at 17,540 million dollars. The objective of the technological company is to continue with its planned purchase of ironSource.

After hearing the news, Unity shares have fallen 7.43% on Wall Street, while those of ironSource have soared 10.97%.

Unity has pointed out that the offer was not interesting for shareholders and «would not reasonably be expected to result in a ‘Superior Proposal’ as defined in Unity’s merger agreement with ironSource.»

«The board continues to believe that the ironSource transaction is compelling and will provide an opportunity to create value in the long term by creating a single end-to-end platform that enables creators to seamlessly develop, publish, run, monetize and grow live games and real-time 3D content,» said John Riccitiellopresident and CEO of Unity in a statement.

From IronSource they have stated that they are committed to completing the agreement with Unity, since it will create «superior value for shareholders, customers and employees«.

As for the ironSource deal, the Unity board has authorized a 24-month share buyback program of up to $2.5 billion in cash at the closing of the merger. Both Unity and ironSource expect the agreement closes in the fourth quarter of the year.

AppLovin made a purchase offer to Unity last week on the condition that it abandon its intention to acquire ironSourcea competitor of the mobile marketing company, for 4.4 billion dollars

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