Unity acquires IronSource, making them unpopular with everyone and tanking stock price

Game engine company Unity is acquiring IronSource in a deal worth millions of dollars, but it’s proving unpopular with everyone from users to investors.

In a move seemingly custom-designed to annoy everyone, gaming tech firm Unity has acquired a new partner, IronSource. As well as an incredibly expensive move just weeks after firing staff in their dozensto cost cut, it’s proven unpopular with investors leading to stock dropping significantly and with users of Unity’s services due to the nature of IronSource’s business.

IronSource, as PCGamer reports, is a developer of install packagers (used mainly for nefarious purposes) and now in-app ad software. Developers who use Unity broadly dislike IronSource either because they don’t like installers that were branded as adware by some of the largest antivirus companies on the planet, or because they don’t like intrusive ads inside of video games.

Twitter was on fire yesterday with people complaining about the move from Unity, and many committing to switching engines to another provider – either Godot for simpler games or Epic Games’ Unreal for more complex ones. One developer put it as simply as possible using strong language.

The move has also not proved successful in the stock market, where Unity continues a downward trend since the start of the year. It dipped six dollars – 15% – when the deal was announced earlier this week. That continues a 75% dip since the start of the year, and solidifies Unity as a stock anyone who bought-in since IPO has lost money on. Direct criticism was also levelled at Unity’s CEO, John Riccitiello.

As part of the announcement, Unity also lowered their guidance for the year. IronSource increased it, as the deal is incredibly good for those who share stock in the company – they’re up 35% in the past week, broadly thanks to this deal. Shares are being compensated at a 74% premium.

“The combination of Unity and ironSource better supports creators of all sizes by giving them all the tools they need to create and grow successful apps in gaming and other consumer-facing verticals like e-commerce,” said Riccitiello in an official statement. “This is a step further toward realising our vision of a fully integrated platform that helps creators in every step of their real-time 3D journey.”

Written by GLHF.