Unity’s board therefore believes that the merger with ironSource is more beneficial to its shareholders, and therefore still recommends that the latter vote in favour of the offer made by ironSource. Notably, the deal will provide Unity shareholders with a 73.5% stake in the combined company, compared with 26.5% for IronSource, a Tel Aviv-based company valued at $4.4 billion as part of the merger.
“Board of Directors still finds the IronSource transaction attractive and presents an opportunity to drive long-term value by creating a single end-to-end platform that enables creators to develop, publish, seamlessly run, monetize and grow real-time 3D games and content. We remain excited about the agreement between Unity and IronSource and the tremendous benefits it will create for our shareholders and Unity’s creators.” commented CEO John Riccitiello.
According to Unity, the alliance with IronSource will enable its customers to achieve better economic outcomes by bringing together the Unity game engine and services, Unity Ads ad monetization solutions, and IronSource’s monetization and distribution platform in one place. The combined company is expected to generate $1 billion in EBITDA (earnings before interest, tax, depreciation, and amortization) by the end of 2024, although its real challenge will be making money for Unity, which has so far specialized in losing hundreds of millions of dollars a year .
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