A consortium that includes Saudi Arabia's Public Investment Fund (PIF) and private equity firm Silver Lake Partners has reportedly held discussions regarding the acquisition of Unity, the company behind the popular game engine. This news follows the consortium's recent $55 billion leveraged buyout of Electronic Arts.
According to Reuters, the group approached Unity with an offer that would value the company at approximately $25 billion. Unity is reportedly working with an investment bank to explore its options following these discussions. It is important to note that no deal has been finalized at this time.
Silver Lake is already a significant shareholder in Unity, having invested up to $400 million in the company in 2017. Egon Durban, Silver Lake's CEO, currently holds a seat on Unity's board of directors, which may affect his involvement in any potential acquisition talks.
Should a deal proceed similarly to the EA acquisition, which involved loading the company with debt, there could be significant repercussions for Unity's workforce. Following the EA takeover, a reported 400 employees were laid off as part of cost-cutting measures, leading to the closure of BioWare and the cancellation of a Sims project. Reports indicate that EA's decision to prioritize funding for Star Wars Battlefront 3 over Mass Effect 5 was a primary factor in BioWare's difficulties.
Unity's recent financial performance has been strong, largely driven by its AI-powered advertising network, Vector. This suggests that this particular segment of Unity's business might be less vulnerable to potential restructuring if an acquisition were to occur.
The potential takeover looms over Unity employees, who may face uncertainty and upheaval akin to what occurred at EA. The outcome of these discussions remains to be seen.