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No, because the acquisition makes AppLovin more valuable. If merging with Unity makes AppLovin $17.5B more valuable than it was previously, then the existing st
by kentonv 4y ago
No, because the acquisition makes AppLovin more valuable. If merging with Unity makes AppLovin $17.5B more valuable than it was previously, then the existing stock's value doesn't change.
Of course, the market may disagree on the value in either direction.
Mergers are weird.
- nl 4y agoThere's an added complication that some of the stock is class-C non-voting stock (which is less valuable) but they plan to make it voting stock at some stage after the transaction. Also, Unity stock holders end up holding 55% of the merged company. And Unity is a loss making company, with only $297.0 Q2 revenue. https://www.marketscreener.com/quote/stock/UNITY-SOFTWARE-INC-112492634/news/Unity-Software-Announces-Second-Quarter-2022-Financial-Results-Form-8-K-41257516/ https://www.marketscreener.com/quote/stock/UNITY-SOFTWARE-IN...
- veidr 4y ago$292.0 million, but yeah.