Unity Software rejects AppLovin's takeover offer, to stick with ironsource

Unity said last month it would buy ironSource in a $4.4 billion all-stock transaction, which the company said on Monday it remains committed to. Shares of Unity were down about 4% in trading before the bell.

Unity Software Inc on Monday rejected gaming software company AppLovin Corp's $17.54 billion takeover offer and said it would go ahead with its deal to purchase mobile app monetization software company ironSource .

AppLovin last week offered to buy Unity in a $17.54 billion all-stock deal, on condition Unity terminated its plans to acquire AppLovin's smaller competitor ironSource. Unity's platform, which has been used to build some of the most-played games such as "Call of Duty: Mobile" and "Pokemon Go", is used for developing mobile, console and computer videogames, while ironSource's platform allows developers to publish and scale mobile games and other apps.

Unity said on Monday AppLovin's offer was not in the best interest of 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 deliver an opportunity to generate long-term value," Unity's Chief Executive Officer John Riccitiello said in a statement.

AppLovin was not immediately available for a comment. Unity said last month it would buy ironSource in a $4.4 billion all-stock transaction, which the company said on Monday it remains committed to.

Shares of Unity were down about 4% in trading before the bell.

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