AppLovin competes with ironSource in helping developers to grow and monetize apps. It offered to buy Unity in an all-stock deal last week on the condition that it would drop the $4.4 billion bid for ironSource. 

Unity’s platform has been used to build games like “Call of Duty: Mobile” and “Pokemon Go.” IronSource’s platform allows developers to publish and scale mobile games and other apps.

InMobi senior vice president and GM Kunal Nagpal believes that Unity and AppLovin would create a “monopolistic behemoth” in gaming.

“While there is an upside for the investors in the deal, consolidation greatly reduces the option set for publishers,” he wrote in an email to Search & Performance Marketing Daily. “The combination would gain efficiencies, but lose on innovation and create a competitive ecosystem that will serve their interests first.”

Unity said Monday AppLovin’s offer was not in the best interests of shareholders.

ironSource in a press release commented on Unity’s announcement that its “Board of Directors has unanimously rejected AppLovin’s unilateral, non-binding, all-stock proposal with Unity and strongly reaffirmed its commitment to a merger with ironSource.”

“Unity’s rejection of AppLovin’s unilateral bid confirms the superior strategic value of the merger with ironSource,” the company said. “Together, Unity and ironSource will be stronger, more profitable, and better able to optimize both the Create and Operate sides of the business to deliver everything creators need to succeed.”

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