IS - Why Unity Software AppLovin and IronSource Stock Crashed in September
Shares of Unity Software (NYSE: U) plunged 25.4% in September, according to data from S&P Global Market Intelligence . While the stock broadly followed the general market downward in a period of challenges to the U.S. economy, the content creation software expert also juggled two mutually exclusive merger offers. Moving forward with one proposed deal led to the other suitor withdrawing its Unity buyout offer. Investors didn't like that lost buyout option at all.
Unity has been pursuing a $4.4 billion stock-swap merger with IronSource (NYSE: IS) since mid-July. AppLovin (NASDAQ: APP) joined the party three weeks later, submitting a stock-based buyout offer for Unity with a total enterprise value of $20 billion. However, that bid was contingent on Unity dropping the pending combination with IronSource.
Unity's board of directors quickly rejected the AppLovin merger idea, doubling down on the company's commitment to to the IronSource deal. AppLovin considered raising its bid for a few more weeks but officially abandoned that option on Sept. 12. Unity shares fell 13.4% the next day , marking the steepest single-day drop of the month.
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Why Unity Software, AppLovin, and IronSource Stock Crashed in September