IS - 3 Things Smart Investors Know About Unity's Acquisition
Unity Software (NYSE: U) , operator of a popular game creation and monetization platform, made a big splash on July 13 when it announced it was acquiring ironSource (NYSE: IS) -- owner of a platform that helps businesses scale and monetize mobile apps -- in an all-stock deal.
Shares of Unity promptly dropped 17% after the announcement, signaling that Wall Street was unhappy with the deal. The transaction valued ironSource at $4.4 billion -- a 74% premium to the 30-day average exchange ratio of the stocks. While there are certainly benefits for Unity to the acquisition, there's more to this deal than meets the eye. Here are three things investors should know.
Unity's solutions cover two areas for game developers: game creation (via its Create solutions unit) and operations (via its Operate solutions unit), which includes monetization. Unity has recently struggled with its monetization solutions, and this addition may have been viewed as a way to help solve its issues.
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3 Things Smart Investors Know About Unity's Acquisition