Saudi Arabia's Public Investment Fund (PIF), in conjunction with a consortium of investors including private equity firm Silver Lake Partners, is reportedly in discussions to acquire Unity Software. Reuters reports that the game development engine company is valued at approximately $25 billion in these potential talks, a figure exceeding its current public market valuation. Silver Lake, which already holds an 8% stake in Unity, is a key player in these negotiations.
This potential acquisition would mark another significant expansion of Saudi Arabia's financial footprint in the gaming sector. It follows the PIF's recent $55 billion acquisition of Electronic Arts, a deal also involving Silver Lake. That transaction has led to controversial cost-cutting measures at EA, including the closure of developer BioWare.
Unity is the second most popular game engine globally, trailing only Epic's Unreal Engine. It has been instrumental in the development of numerous titles, ranging from indie hits like Hollow Knight and Among Us to large-scale live-service games such as Genshin Impact. Beyond gaming, Unity's software is utilized in diverse fields including automotive design, filmmaking, and architecture.
News of the potential acquisition has already impacted Unity's market performance, with its shares reportedly rising by nearly 15% following Reuters' report. The company has navigated a turbulent period in recent years, notably facing significant backlash in 2023 over its proposed controversial installation-based fee structure for game developers. This led to the resignation of John Riccitiello as Unity's president and CEO.