The share prices for Unity have experienced a dip during the latest trading session. The dip was recorded after Unity reportedly rejected the offer to be acquired by AppLovin.
Unity Shares Dipped 7%
In the latest trading session, the share prices for Unity have experienced a 7% dip. This happened because Unity rejected the offer made by AppLovin to be acquired by the company.
Unity is one of the major video game software developing companies that recently received an offer to be acquired by AppLovin.
As part of the procedure, the entire board of directors at Unity was to sit down and decide the face of the company. Following the meeting, the board of directors decided that they were not going to proceed with the deal.
Therefore, Unity has rejected the offer made by AppLovin and they will no longer proceed with the acquisition offer.
Unity Rejected a $20 Billion Bid
According to sources, Unity had received a $20 billion bid from AppLovin for the acquisition. However, the Unity directors decided that they were not going to proceed with the deal.
The directors stated that it was not in the better interest of their shareholders as well as for the company to be acquired by AppLovin.
Unity Shareholders’ Preference
According to the shareholders, it is not in favor of their company to let AppLovin acquire Unity.
However, the Unity shareholders are siding with Unity acquiring IronSource. IronSource is a mobile advertising technology firm.
It was back in the month of July when Unity announced that it was proceeding with the acquisition of IronSource.
AppLovin had reportedly offered a bid to acquire Unity at a price of $58.85 per share. The company announced that it was a premium price of about 18% over the closing price of the recently ended trading session.
Shareholders Vote in Favor of IronSource
According to the directors at Unity, the shareholders had voted in favor of acquiring IronSource. Unity had reportedly offered a $4.4 billion bid for the acquisition of the technology firm.
The deal between both the companies was finalized in the month of July.
John Riccitiello, the CEO at Unity stated that they would be able to do things so much better if they join hands with IronSource. By doing this, they would be able to offer so much to their shareholders.
If the board of directors was to vote in favor of AppLovin, then it would have dropped the idea of acquiring IronSource. Now, they will proceed with the acquisition of IronSource.
Change in Unity’s Share Prices
When Unity announced its deal with AppLovin, its share prices experienced a 10% surge. However, as the company has announced it has rejected the acquisition offer, its shares have plummeted by 7%.