AppLovin submitted a "compelling non-binding proposal" to combine with video game engine Unity Software (NYSE: U). Under the terms of the proposed all-stock deal, each outstanding share of Unity stock would be exchanged for 1.152 shares of AppLovin Class A voting stock and 0.314 shares of AppLovin Class C non-voting stock. This would result in Unity shareholders receiving 55% of the outstanding shares of the combined company, while AppLovin shareholders would control the remainder, though AppLovin would maintain 51% of the voting control.
Today's video focuses on Unity Software (NYSE: U) and a recent proposal submitted by AppLovin (NASDAQ: APP) to merge both companies. If the proposal is accepted, Unity must terminate its merger agreement with ironSource (NYSE: IS).
Unity Software Inc, the U.S. developer whose software is used in video games like Tencent Holdings' "Honor of Kings", said on Tuesday it had struck a deal to create a joint venture with multiple partners, valued at $1 billion, from its China business. The announcement follows an exclusive Reuters report last week that Unity was in talks to spin off its China unit to help it expand in the world's biggest games market.