Saudi Investment Fund Could Buy Unity, Valuing the Company at Up to $25 Billion

Saudi Arabia’s Public Investment Fund (PIF) is reportedly in talks to buy Unity Software alongside a consortium of investors that includes US private equity firm Silver Lake Partners. Reuters reports the news, citing its sources. According to them, Unity is already in discussions with potential buyers, and the company could be valued at up to $25 billion in a potential deal.

Unity is currently valued at approximately $21.5 billion on the stock market, with its shares rising after its latest financial results. Silver Lake already owns around eight percent of the company, and Reuters reports that investors are talking with Unity about its future direction. No sale has been agreed, and the company is considering its options.

If the acquisition goes ahead, it would be another significant Saudi investment in the gaming industry. PIF and its partners recently completed the $55 billion acquisition of Electronic Arts, which also involved Silver Lake. The deal has, however, sparked controversy. According to available information, EA’s heavy debt burden related to financing the acquisition is leading to widespread cuts and changes at the company. Among the most heavily criticized decisions is the closure of the popular BioWare studio.

The Saudi fund already owns several gaming companies and studios. These include mobile game developer Scopely, and it also holds stakes in game publishers Nintendo and Capcom. Acquiring Unity would further expand its influence, this time into the tools developers use to create games.

Unity is the second most widely used game engine after Unreal Engine from Epic Games. Successful indie titles such as Hollow Knight and Among Us were made with it, as were major games with long-term support, including Genshin Impact. Its use, however, extends far beyond the gaming industry. The software is also used by automotive designers, filmmakers, and architects.

Reports of a possible sale have already had a positive effect on the company’s value. Unity shares rose by nearly 15 percent after Reuters published the news. The company has had a difficult period, however. In 2023, it planned to introduce a new fee for developers based on the number of installs of their games. The proposal drew widespread criticism, after which the company’s president and CEO, John Riccitiello, left the company.

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