On Tuesday in a press release, AppLovin a mobile technology company proposed to buy all of Unity’s stocks to become a combined company. Unity is known as a cross-platform game engine developer. Unity Stocks are worth $58.85 per share which is valued at 20 billion. Unity stockholders will still hold about 55% of shares if the two companies do decide to combine which is around 49% of the companies voting rights. As stated in AppLovin’s press release the CEO Adam Foroughi has said, “We believe that together, AppLovin and Unity create a market leading business that has tremendous growth potential that would generate an estimated run-rate Adjusted EBITDA (the overall profit of a business) of over $3 billion by the end of 2024 and would be in the best interest of shareholders of both companies, Over the last decade we have built and operated a leading and innovative company in mobile app marketing and monetization solutions. Unity is one of the world’s leading platforms for helping creators turn their inspirations into real-time 3D content. With the scale that comes from unifying our leading solutions and innovation that would be achieved with the combination of our teams, we expect that game developers would be the biggest beneficiaries as they continue to lead the mobile gaming sector to its next chapter of growth.”
If the two companies were to combine their revenue growth would be more significant together rather than if they were stand-alone companies. AppLovin has come to the conclusion that if the companies were to combine their EBITDA would be $700 million in 2025 and a minimum of $500 million in 2024. ApplLovin has proposed to have John Riccitiello the CEO of Unity become the CEO of the combined company and Adam Foroughi the CEO of AppLovin become the COO. AppLovin also believes that its company is in, ” better positioned than any other company to develop an end-to-end platform with Unity”. As stated in the press release it was said that,
Unity’s audience reach through games built on Create Solutions paired with AppLovin’s powerful AXON machine learning engine will create material efficiency gains for the combined growth platform, leading to revenue gains, but even more importantly facilitating materially more value to app developers. With AppLovin and Unity working in concert, developers would be able to seamlessly take their app from concept to commercialization with continued growth and optimization at far greater scale and effectiveness, which can drive higher growth for the entire mobile app industry and beyond.
AppLovin’s board of directors is waiting patiently for a response from Unity’s Board of directors. AppLovin’s board of directors supports this proposal for unity and for Applovin to become a combined company.