Citi ‘would not be surprised’ if AppLovin made another attempt to buy Unity

Citi notes that Unity (U) shares have been under pressure in the last month following changes to the pricing of its game engine that resulted in push back from game developers and an eventual adjustment to the company’s pricing to address some of these concerns. The firm believes this pressure may have driven Unity’s CEO John Riccitiello to retire and “in the wake of this management change” the firm “would not be surprised” if AppLovin (APP) made another attempt to acquire Unity, the analyst tells investors. Citi, which recalls that AppLovin offered to merge with Unity in August 2022 and believes shares of AppLovin would trade higher on any prospective new Unity offer, keeps a Buy rating and $49 price target on Unity shares.