Saudi Arabia's Public Investment Fund (PIF) and private equity firm Silver Lake are reportedly in discussions to acquire the game engine company Unity, in a potential deal valued around $25 billion. This follows their earlier acquisition of EA for $55 billion earlier this year.
According to Reuters, Silver Lake's Egon Durban is already a member of Unity's Board of Directors and the firm holds roughly an eight percent stake in the company from a previous $400 million investment. The $25 billion valuation figure is considered a preliminary estimate. Unity's recent quarterly financial report showed a 59% increase in strategic revenue year-over-year and a net income of $122 million, which could potentially increase the valuation. However, broader economic shifts and market reactions to the generative AI sector, following recent elections, could also influence the figure.
Unity has experienced notable events in its history, including the 2024 runtime fee controversy where the company attempted to implement fees on game sales using its engine, a move that was quickly rescinded due to developer backlash. The company has also recently collaborated with Google on AI-driven game creation platforms like Google PlayGround and Unity Spark.
Following their acquisition of EA, which led to significant staff layoffs and the closure of BioWare, the nature of the proposed Unity deal remains unconfirmed. While the EA acquisition was a leveraged buyout, saddling the company with debt, the exact terms of the potential Unity deal are not yet public. If the acquisition proceeds, it could be structured as a straightforward private purchase.