What happened
Unity has engaged in acquisition talks with a consortium led by Saudi Arabia's Public Investment Fund (PIF) and including Silver Lake, with discussions reportedly valuing Unity at around $25 billion. Silver Lake already owns 8% of Unity, having invested $400 million in May 2017. The consortium previously acquired Electronic Arts for $55 billion. Unity's third-quarter revenue rose 32% to $622.1 million, marking its first GAAP-profitable quarter since going public in 2020, driven by its mobile adtech platform Vector, which saw 126% growth. The potential acquisition underscores PIF's interest in mobile gaming, as most mobile games are built with Unity. No deal is certain, and terms could change. Unity declined to comment, while Silver Lake and PIF did not respond.
Key facts & figures
- ·Silver Lake and PIF held talks to acquire Unity for around $25 billion.
- ·Silver Lake holds an 8% stake in Unity, having invested $400 million in May 2017.
- ·The consortium previously acquired Electronic Arts for $55 billion.
- ·Unity's Q3 revenue rose 32% to $622.1 million, with its first GAAP-profitable quarter since 2020, driven by Vector's 126% growth.
- ·No deal is certain, and plans may change.
Key questions for investors and operators
When evaluating transactions, technology stacks, or commercial partnerships in this space, we recommend looking closely at three questions:
Companies & platforms involved
Silver Lake and Saudi Arabia's Public Investment Fund (PIF) have reportedly held talks to acquire Unity in a deal that could value the game engine and ads firm at around $25 billion.
Silver Lake already owns about 8% of the game engine company.
Silver Lake and Saudi Arabia's Public Investment Fund (PIF) have reportedly held talks to acquire Unity.
The potential acquisition would mark another major gaming investment for Silver Lake and PIF, which were part of the consortium that took Electronic Arts private in a $55bn deal that closed earlier this year in August.
PIF subsidiary Savvy Games Group has also been working with Unity under a memorandum of understanding to support game development in Saudi Arabia.