AppLovin decided against submitting a revised bid to acquire Unity Software after an initial $17.5 billion offer was rejected, ending its interest in a takeover.
In a statement, AppLovin noted it had seen potential in combining its profitable business model and machine learning capabilities with Unity Software, and the opportunity was even more interesting given the market headwinds facing the industry.
However, after its bid was rejected last month, AppLovin concluded “its path as the independent market leader is better for its stockholders and other stakeholders”, with intentions to move forward by gaining market share and expanding its platform.
Unity Software’s board rebuffed AppLovin’s bid, recommending the company stick with its own planned acquisition of advertising technology player IronSource for $4.4 billion.
AppLovin had stated Unity Software would be required to call off its IronSource deal should its own takeover bid move forward.
Instead of raising its bid or offering revised terms, AppLovin said it was focused on making enhancements to its core technology, expanding into growing categories including connected TV and developing new offerings for OEMs.
“By focusing on enhancements and making the right investments now, it will be poised to emerge from the current market volatility in an even stronger position,” AppLovin added.