Unity officially agreed to merge with ironSource a leading business platform that helps mobile content creators by turning their applications into successful businesses. The two companies entered into a definitive agreement today, which will see ironSource merging into a wholly-owned Unity subsidiary.
Once the deal officially closes, the Unity side will own 73.5% of the merged company, meanwhile, ironSource shareholders will hold 26.5%, this obviously means the merger between the two companies is an all-stock deal.
John Riccitiello, CEO of Unity believes the two companies will “create a unique platform that allows content creators to easily create, publish, run, monetize, and grow live games and RT3D content seamlessly.” and make the world a better place by helping people become creators.
Riccitiello also added the following line “Today, games don’t launch – they live. Players want connection – they want to play with each other, and be social. And we see that these trends are extending beyond gaming.” and said, “If you don’t know ironSource, they bring a proven record of helping creators focus on what creators do best – bringing great apps and user experiences to life – while enabling business expansion in the app economy.”
The CEO believes this merger will accelerate Unity’s growth as a software company powering the creator economy end-to-end.
The CEO of ironSource, Tomer Bar-Zeev also commented on the merger saying:
“To succeed today, creators need an extensive set of solutions and products working in concert to power amazing user experiences and sustainable business growth. The combination of Unity and ironSource brings together every product needed to power that flywheel of growth, in a differentiated platform positioned to lead our category and beyond. We couldn’t be more excited about our shared mission to remove obstacles for creators to grow.”
The merger will bring combine the Unity game engine and editor, Unity Ads, and Unity Gaming Services with ironSource’s mediation and publishing platforms. Unity leadership thinks that the combined business will transform Unity’s financial profile into a highly profitable and free cash flow positive company.
Unity laid off 4% of its workforce to realign its resources at the end of June 2022, but a merger with ironSource wasn’t the expected outcome following the news. The leading software company also recently pushed Unit Gaming Services out of beta to help developers build live service games easily.
The Unity CEO has a special interest in metaverse and VR/AR technologies, meaning the industry may see major investments in the following year from the newly merged company.