ironSource plunges 16% after AppLovin offers to buy Unity Software

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• ironSource (NYSE:IS) plunged 16% in premarket trading after AppLovin (NASDAQ:APP) offered to buy Unity Software (NYSE:U) in an all-stock deal.
• Under the proposal, Unity(U) would have to terminate its agreement to purchase ironSource, according to the AppLovin press release.
• Unity (U) agreed to buy ironSource for $4.4 billion in a stock deal last month.
• Unity (U) is set to release Q2 results after the close on Tuesday.

Comments

[DONTIGNY]

Great news ! Prefer IS on standalone basis...was a steal!!! And small break up fee not bad !

Unity would be required to pay ironSource a termination fee of $150 million

[pumpstick]

APPLovin is desperate. Can they pull this off?

[Interstellar Investments]

This looks like a reverse merger

Unity CEO is proposed to be the CEO of combined org. APPLovin CEO would be the COO

APPLovin shareholders get minority 49% stake of combined

Just arranging deck chairs in two titanic, that’s all folks

[Booban]

@Interstellar Investments This CEO seems to be looking out for himself rather than the company. Unity is down like 50% from where it used to be. He is selling it cheap.

[Bitzap]

@Booban

APP is cheap as well. It's an all stock merger, so what really matters is relative valuation between both companies, and whether the combined result is worth more than the sum of the parts.

[scone22]

I would love this as an IS investor who had to sell all his shares to avoid owning U

[P M D]

How is AppLovin going to pull this off? They're not really a bigger company than Unity.

[User 31614085]

whole lot of "plunging" going around this morning...