Unity's board of directors unanimously turned down the unsolicited proposal and decided to push forward with a previously announced deal with IronSource.
On Monday, Unity announced that it has rejected mobile tech firm AppLovin's $17.54 billion takeover offer and said it would push forward with a previously announced deal with IronSource.
The company noted that its board of directors made the decision unanimously saying that AppLovin's offer "is not in the best interests of Unity 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 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," Unity CEO John Riccitiello said.
He also added that the company remains "committed to and enthusiastic" about the merger with an Israeli app monetization platform ironSource as it would create "substantial benefits" for both the company's shareholders and Unity creators.
Unity revealed its plans to acquire ironSource in an all-stock deal on July 13. The deal would allow Unity shareholders to own about 73.5% of the combined company with current ironSource shareholders being in control of the rest 26.5%.
AppLovin's unsolicited offer was announced last week. AppLovin expected to buy Unity if the deal with IronSource was terminated. According to the deal terms, Unity would have owned 55% of the combined company representing about 49% of the voting rights.
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