Unity has decided to turn down the Applovin offer worth $17.5 billion to focus more on the Ironsource deal that stands before them, even though it has caused quite the uproar in the game development community.
In July 2022, Unity decided that they would be merging with the company IronSource, which is an app monetization and distribution software. That is when Applovin attempted to solicit their merger deal with Unity, with the simple condition that they completely terminate the deal they had going with IronSource. The board of directors at Unity confirmed today, August 15, 2022, that they will not be terminating the deal with IronSource, and reject the proposal made by Applovin. The board also went on to ask any of the shareholders to reject the deal, stating,
"The Board continues to believe that the ironSource transaction is compelling and will deliver an opportunity to generate long-term value through the creation of a unique end-to-end platform that allows creators to develop, publish, run, monetize, and grow live games and real-time 3D content seamlessly. We remain committed to and enthusiastic about Unity’s agreement with ironSource and the substantial benefits it will create for our shareholders and Unity creators."
While Unity's engine is wildly known for helping game developers create some of the most amazing and successful games within the industry, their deal with IronSource did spark some negative press from the users of the engine. This is because IronSource has been referred to as Malware within the mobile app gaming industry. The company is known for being a part of malware campaigns and even the spreading of said Malware.
IronSource was founded and created in 2010, when their very first product was launched to the masses, InstallCore. While all seemed well and good, little did the users of InstallCore know that they were downloading software and browser add-ons that they did not know existed within the legitimate installation. This triggered anti-malware applications, such as Windows Defender, to begin flagging the software as malware and warning the users of the dangers before installation.
Another reason this deal raised quite a few eyebrows was due to the timing. This announcement that Unity would be merging with IronSource came just mere weeks after Unity laid off over 200 employees. This is only made worse by the fact that apparently, the CEO of Unity was telling his employees that there would not be layoffs coming.