AppLovin abandons effort to acquire Unity after $20 billion bid was rejected

AppLovin logo is seen at the company’s booth one day before the China Digital Entertainment Expo & Conference (ChinaJoy) at Shanghai New International Expo Center on August 1, 2019 in Shanghai, China.

The game developer is giving up on trying to buy the game studio.

App lovin said on Monday that it won't submit another proposal to acquire the video game software company after shareholders rejected the $20 billion bid last month.

The company said that its path as the independent market leader is better for its stockholders.

AppLovin made an offer to buy Unity for $58.85 per share, which was a premium of 18% to the prior day's closing price. The deal wasn't in the best interests of Unity shareholders, according to the company. Instead of taking that offer, Unity recommended that shareholders vote in favor of the company's proposed acquisition of Iron Source.

The Iron Source deal would have had to be abandoned. John Riccitiello would have been the CEO of the merged company.

Adam Foroughi said that they were excited about the long-term growth potential of their core markets. continual improvements to our products and technology and expanding into newer high-growth markets are some of the things we can control.

App lovin proposal was not likely to be better for unity.