AppLovin Ditches Merger Plan With Unity Software

(RTTNews) - AppLovin (APP), Monday announced its decision to ditch its plans to merge with Unity Software Inc. (U).

In statement, the company said it does not intend to submit another proposal to combine with Unity Software and has withdrawn its initial proposal from August 9, 2022.

Last month, the mobile technology company submitted a merger proposal to the Board of Directors of video game software development company Unity Software. The all-stock merger consideration would value Unity at $58.85 per share, 18% premium to the closing price as on August 8. The enterprise value of the deal is estimated at $20 billion.

The company said that "following careful consideration, it has concluded that its path as the independent market leader is better for its stockholders and other stakeholders. AppLovin will move forward with the intention of continuing to gain market share and expand its platform."

"We remain excited about the long-term growth potential of our core markets and AppLovin," said Adam Foroughi, CEO and Co-founder of AppLovin. "Our experienced and dedicated team will continue to focus on what we can control, including continual improvements to our products and technology and expanding into newer high-growth markets."