Unity, will the company behind the engine be the next to be acquired?

Unity, will the company behind the engine be the next to be acquired?


In a not-so-happy period for Unity, with layoffs and criticisms over certain statements by the CEO and the recent union with a well-known software distributor that allegedly hides malware, a famous mobile app maker is tending to take over the company. The news has been circulating online in the last few hours and concerns a purchase attempt for a figure close to 20 billion dollars.

Behind the offer is AppLovin, a company that produces apps for mobile , which offered $ 17.54 billion for the acquisition of the company behind Unity. Currently the company behind the engine is evaluating the offer, which will be paid in action: the evaluation of each single stock by AppLovin is equal to 58.85 Dollars, a certainly important figure, which also reflects the popularity of the engine itself, used for numerous successful productions, such as Pokémon GO, Valheim, VR Chat and Fall Guys.| ); }
If the company accepted the offer, AppLovin and Unity would come together in one banner. At the head there would still be Riccitiello, CEO of the company behind the engine. Riccitiello has recently been criticized for some of his statements regarding monetization, so much so that he has already had to take a step back to avoid attracting the ire of the public and some independent developers.

Why Unity Software Stock Is Rising Today

Unity Software Inc (NYSE:U) shares are trading higher Wednesday. The stock initially traded lower Tuesday evening after the company reported mixed financial results, but it has since recovered amid positive analyst coverage and an overall market rebound. 

Unity said second-quarter revenue jumped 9% year-over-year to $297 million, which missed the estimate of $298.3 million, according to Benzinga Pro. The  gaming software company reported a quarterly net loss of 18 cents per share, which beat the estimate for a loss of 21 cents per share. 

'In Create we have momentum with customers in and outside of Games. Our Business outside of Games is growing even faster and now represents 40% of our total Create Solutions revenue, up from 25% in 2021,' said Luis Visoso, CFO of Unity.

Unity expects third-quarter revenue to be between $315 million and $335 million versus the estimate of $346.87 million. The company expects full-year revenue to be between $1.3 billion and $1.35 billion versus the estimate of $1.36 billion. 

Related Link: Unity Software Reports Q2 Earnings In Wake Of AppLovin M&A Offer: Revenue Miss, Guidance Disappointment And More

Analyst Assessment:

  • Piper Sandler analyst Brent Bracelin maintained Unity with a Neutral rating and raised the price target from $34 to $42.
  • Barclays analyst Mario Lu maintained Unity with an Equal-Weight rating and raised the price target from $35 to $49.
  • Oppenheimer analyst Martin Yang maintained Unity with an Outperform rating and raised the price target from $54 to $60.
  • U Price Action: Unity has a 52-week high of $144.69 and a 52-week low od $29.09.

    The stock was up 4.85% at $52.76 at press time, according to Benzinga Pro.

    Photo: Rene from Pixabay.