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After Buying EA, Silver Lake and PIF Are Reportedly Now Seeking to Acquire Gaming Software Provider Unity
Developing story first seen 5 hours ago
Silver Lake Partners and Saudi Arabia’s Public Investment Fund (PIF) have reportedly held talks about acquiring Unity, the company behind a widely used game engine and development tools. The discussions are preliminary, with no deal assured, but a purchase would extend the investors’ presence in the games industry after their recent acquisition of Electronic Arts.
The consortium discussed a valuation of about $25 billion before Unity’s latest earnings raised its market capitalisation to roughly $21.5 billion. Unity is consulting an investment bank about its options; Silver Lake already owns 8% and has invested $400 million. Unity’s tools are used in thousands of games and across sectors including automotive design and filmmaking, and its shares rose nearly 15% after the talks were reported, to $48.80.
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In short
- Silver Lake and PIF have reportedly discussed buying Unity.
- Talks are preliminary, with no deal assured.
- Unity shares rose nearly 15% after the report.
How this story developed
- 15 minutes ago Silver Lake Partners and Saudi Arabia’s Public Investment Fund (PIF) have reportedly approached Unity about a possible acquisition, in what could mark another major investment by the pair in the games industry.
- 20 minutes ago Silver Lake Partners and Saudi Arabia’s Public Investment Fund (PIF) have reportedly held talks about acquiring Unity, the company behind a widely used game engine and development tools.
- Eurogamer After gobbling up EA, Saudi Arabia and private equity firm Silver Lake reportedly looking to buy Unity
- IGN After Buying EA, Silver Lake and PIF Are Reportedly Now Seeking to Acquire Gaming Software Provider Unity
- VGC Saudi Arabia’s PIF and investment firm Silver Lake have reportedly been in talks to buy Unity
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
A takeover could give Unity access to patient capital and strategic support, helping it invest in its development tools and compete in a fast-moving market. Silver Lake’s existing stake and familiarity with the company may help a buyer understand its needs, while a higher offer could reward shareholders and give Unity resources to expand across gaming and other industries.
The case against
Unity’s tools are widely used by game developers and other industries, so a change in ownership could raise concerns about pricing, product priorities or access to core technology. Concentrated ownership by investors already expanding their influence in gaming may also reduce independence and competition; with talks still preliminary and the reported valuation substantial, shareholders and users may question whether a takeover serves Unity’s long-term interests.
Explained simply
Unity makes software that developers use to build and run video games, including a game engine that helps create a game’s graphics and behaviour. Its tools are also used in fields such as car design and filmmaking.
Silver Lake is an investment firm, while Saudi Arabia’s Public Investment Fund is the country’s sovereign wealth fund, which invests public money. Silver Lake already owns a stake in Unity; the two investors have also recently bought Electronic Arts, a major video game publisher.
A change in ownership could affect a company whose tools are used by many game makers and other industries. The reported talks are preliminary, and any purchase would depend on the parties reaching an agreement.
Coverage · 3 sources
- IGNAfter Buying EA, Silver Lake and PIF Are Reportedly Now Seeking to Acquire Gaming Software Provider Unity
- EurogamerAfter gobbling up EA, Saudi Arabia and private equity firm Silver Lake reportedly looking to buy Unity
- VGCSaudi Arabia’s PIF and investment firm Silver Lake have reportedly been in talks to buy Unity
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