AppLovin's (NASDAQ: APP) stock price plunged 10% on Aug. 9 after the company made an unsolicited takeover bid for Unity Software (NYSE: U). AppLovin is offering to exchange 1.152 shares of its Class A voting stock as well as 0.314 shares of its Class C nonvoting stock in exchange for each outstanding share of Unity. The bid values Unity at about $58.85 per share, which would be 17% higher than its closing price on Aug. 9 but more than 70% below its all-time high from last November.
If the merger is approved, Unity's shareholders would receive an equity stake of 55% in the combined company, but only retain a 49% voting stake due to the inclusion of AppLovin's non-voting shares. AppLovin wants Unity's CEO, John Riccitiello, to become the CEO of the combined company, and for its own CEO, Adam Foroughi, to become COO.
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Source Fool.com