AppLovin bids $17.5 billion to acquire game engine company Unity

• "We have received the offer from AppLovin and our Board will thoroughly evaluate it," a Unity spokesperson said in a statement.

Between the lines: While AppLovin is best known as a mobile ad tech company, it has expanded into video game publishing in recent years.

• The company has been making acquisitions in the space as well, such as Machine Zone (maker of Game of War: Fire Age and Mobile Strike) for a reported $500 million, and iOS game Wordle! (no, not that one).
• However, it's not moving away from its ad tech roots: Last year, it agreed to acquire Twitter's mobile ad network, MoPub, for $1 billion.

Yes, but: AppLovin's bid doesn't include ironSource, a rival that Unity offered to buy for $4.4 billion last month. That is: Unity must now choose between the two companies.

• It makes sense why AppLovin wouldn't want to buy ironSource as part of the deal: It would be duplicative of its own capabilities.

What's next: Unity is set to announce its quarterly earnings later today, and it's sure to get some questions about the offer.

• Update: As the company's earnings call began, CEO John Riccitiello announced that it would not discuss the acquisition offer at this time.

Editor's note: The story has been updated with additional details about the proposed deal.