AppLovin offers to buy video game software maker Unity in $17.5 bln deal

Gaming software company $Applovin(APP.US)$ made an offer on Tuesday to buy its peer $Unity Software(U.US)$ in a $17.54 billion all-stock deal, threatening to derail Unity's announced plan to acquire AppLovin's smaller competitor ironSource .
AppLovin has offered $58.85 for each Unity share, which represents a premium of 18% to Unity's Monday closing price. Unity will own 55% of the combined company's outstanding shares, representing about 49% of the voting rights.
AppLovin hired advisers to work out an offer after Unity last month said it would buy ironSource in a $4.4 billion all-stock transaction, sources familiar with the matter told Reuters. Unity's board will have to terminate the ironSource deal if it wants to pursue a combination with AppLovin, according to the proposal.
Under the proposed deal, Unity's Chief Executive John Riccitiello will become CEO of the combined business, while AppLovin Chief Executive Adam Foroughi will take the role of chief operating officer.