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Exclusive-Silver Lake, PIF have held recent talks to buy gaming software provider Unity, sources say
Unity has held recent takeover talks with a consortium including Silver Lake and Saudi Arabia’s Public Investment Fund (PIF), as major investors continue to consolidate their gaming interests. A deal would take private one of the world’s largest providers of tools for making games and other interactive 3D applications, and could rank among the software sector’s biggest leveraged buyouts in recent years.
The consortium discussed a valuation of about $25 billion before Unity’s latest results put its market value at roughly $21.5 billion. Unity reported revenue up 32 per cent to $622.1 million and adjusted earnings of 44 cents per share, with growth in advertising and game-development businesses. No deal is certain, and terms could change; Silver Lake owns about 8 per cent of Unity, and its director Egon Durban would typically recuse himself from sale deliberations.
In short
- Unity is in takeover talks with Silver Lake and Saudi Arabia’s PIF.
- The consortium discussed a valuation of about $25 billion.
- Unity’s latest quarterly revenue rose 32 per cent to $622.1 million.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
A sale could give Unity access to patient capital and strategic support to invest in its game-development and advertising businesses, while offering shareholders a substantial premium and a clear exit. Taking the company private could also let management pursue longer-term changes without the pressure of quarterly market expectations.
The case against
Unity’s tools are widely used to make games and other interactive 3D applications, so a change of ownership could affect developers who rely on them and raise questions about the company’s priorities or pricing. A leveraged buyout could also load the business with debt, while the reported valuation and Silver Lake’s existing stake make careful scrutiny of the process and terms important for shareholders.
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