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AppLovin predicts $700M in synergies from proposed Unity merger

Kerry Flynn
Aug 11, 2022
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Illustration: Eniola Odetunde/Axios

AppLovin executives spent much of Wednesday's earnings call gushing about the "synergies" in its bid for Unity.

Why it matters: AppLovin needs to convince not only Unity but also its own shareholders that it's a good idea.

  • The Street didn't respond positively when it was first announced and expressed doubt about its success in the proceeding days.

What they're saying: "[W]e didn't stop to think about the synergy math until they announced that ironSource deal, and we started doing the analysis. And then we just saw a need to put this bid out there because the math was so compelling to us," CEO Adam Foroughi said.

  • That number is $700 million in three years.
  • "It's more scale, more customer reach, more data, all coming into the same place," Foroughi said.

Flashback: AppLovin has been active in M&A. In May, it acquired the iOS game Wordle! It completed its acquisition of connected TV software company Wurl in April. Its acquisition of app monetization company MoPub closed in January.

What's next: AppLovin has not yet heard back from Unity on the proposal, CFO Herald Chen said.

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