Unity Software, the company behind one of the world's most widely used game engines, is reportedly in talks for a potential buyout valued at $25 billion, according to a new report from Reuters. The discussions involve U.S. private equity firm Silver Lake Partners, which already holds an eight percent stake in Unity, and Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF). PIF recently concluded its acquisition of EA earlier this summer.
This potential deal would represent one of the largest buyouts in the history of the games industry, surpassing only Microsoft's acquisition of Activision and EA's sale. The offer places Unity's valuation at $25 billion, above its current public market price of $21.5 billion. Details regarding other potential partners in the consortium remain unknown.
The acquisition, if successful, would significantly expand Saudi Arabia's influence within the gaming sector. PIF already holds stakes in major companies like Nintendo, Capcom, and Take-Two Interactive, in addition to its recent purchase of EA and ownership of mobile game developer Scopely. The PIF has also invested in esports properties such as Evo and the upcoming Esports World Cup as part of a broader strategy to diversify the nation's economy beyond oil and enhance its soft power through gaming.
Unity's engine is not only a cornerstone for many game developers but also sees use in sectors beyond gaming, including engineering and filmmaking. Any change in ownership could introduce uncertainty for the numerous developers who rely on the technology, particularly as some express concerns over Epic Games' current AI-focused direction with its Unreal Engine.
Discussions are ongoing, and no definitive agreement has been reached at this time.