After EA Purchase, Saudi Investors Eye Multibillion-Dollar Unity Deal

Investment firm Silver Lake and Saudi Arabia’s sovereign wealth fund, PIF, are considering acquiring Unity, one of the largest providers of video game development tools.

According to Reuters, talks with Unity Software have intensified in recent weeks. Silver Lake, which owns about 8% of the company, and PIF have made an acquisition proposal. Unity then hired an investment bank to evaluate its options. A deal is not guaranteed, and its terms could change.

Silver Lake and PIF previously participated in the $55 billion acquisition of Electronic Arts. Affinity Partners was also part of the consortium. The deal to take the publisher private closed in August.

Unity is known for its game engine and tools, which are used by thousands of studios, including the creators of Monopoly Go! and Pokémon Go. Both companies are owned by an investor group that includes PIF, Silver Lake, and Affinity Partners.

Interest in Unity grew after the company published its quarterly report. Revenue rose 32% to $622.1 million, and adjusted profit was 44 cents per share. Thanks to the development of its Vector advertising platform using AI, Unity reported its first quarterly profit under GAAP since going public in 2020. The company’s market value reached approximately $21.5 billion.