Unity Software’s Board Rejects AppLovin’s $20 Billion Unsolicited Proposal

Unity Software Inc. rejected an unsolicited proposal to merge with AppLovin Corp. in an all-stock deal, keeping it on track to buy competitor IronSource.

The AppLovin proposal, valued at about $20 billion when it was offered Aug. 9, would not reasonably be expected to result in a “superior proposal,” the Unity board said in a statement Monday. Unity shares dropped as much as 7.5%, while AppLovin declined 4%.