Unity investors did not appreciate the news about the upcoming merger with ironSource. During the day, the company’s stock price decreased by 17.39% to $32.82 apiece and continued to fall after the exchange closed.
There are at least four reasons for this:
???? simultaneously with the announcement of the deal, Unity lowered its financial forecast for 2022, indicating that it plans to earn $1.3-$1.35 billion instead of $1.35-1.42 billion;
???? at the end of June, the media reported large-scale layoffs at Unity. Some attributed this to the company’s losses, including due to large acquisitions;
???? The merger with ironSource probably means that Unity has decided to reconsider its development strategy and pay more attention to advertising. Against the background of the crisis in the mobile marketing market, interest in the company may decline;
???? Twitter users recalled the bad reputation of InstallCore from ironSource (note. the company stopped supporting the program), which was included in the virus lists.