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Unity PIF Acquisition Talks Could Lead to a US$25 Billion Take-Private Deal
Saudi Arabia‘s gaming investment footprint could soon extend much deeper into the technology actually used to build games. The country’s Public Investment Fund (PIF) and private equity firm Silver Lake have reportedly held talks to acquire Unity Software, with a valuation of about US$25 billion discussed in recent weeks.
According to an exclusive Reuters report on the acquisition talks, the prospective buyers recently approached Unity, prompting the company to work with an investment bank as it evaluates its options. No agreement has been reached, and the structure or terms could still change.
The discussions come as the company continues expanding beyond its traditional game-development roots, including a recent cross-platform partnership between Unity and Epic Games intended to make their respective ecosystems work more closely together.
Silver Lake Already Owns Around 8%
Silver Lake is not approaching this as a newcomer. The technology-focused investment firm currently owns approximately 8% of Unity and first invested up to US$400 million in the company in 2017. Silver Lake co-CEO Egon Durban also sits on the board, although Reuters notes that his position would typically require him to recuse himself from deliberations surrounding a potential sale.
A successful acquisition would return Unity to private ownership after the company went public in September 2020. The reported US$25 billion valuation was discussed before the latest earnings pushed its market capitalisation to around US$21.5 billion. The company subsequently reported Q3 revenue of US$622.1 million, up 32% year-on-year, while delivering its first quarterly GAAP profit since becoming a public company.
Unity shares had already climbed almost 15% during regular trading following those results before rising further in extended trading after the acquisition report emerged.
PIF and Silver Lake Already Took Electronic Arts Private
The potential Unity deal would reunite two of the investors behind one of gaming’s biggest acquisitions. PIF and Silver Lake were part of the consortium that completed the US$55 billion Electronic Arts take-private deal in August, alongside Affinity Partners. That followed an acquisition process where Saudi PIF was positioned to emerge as the overwhelmingly dominant Electronic Arts shareholder.
Acquiring Unity would be a very different proposition. Rather than owning another publisher, the consortium would control technology embedded throughout the wider development ecosystem.
The engine powers thousands of projects across mobile, PC and consoles. Its reach includes games as varied as Football Manager 2026, which made its franchise-wide transition to the engine, while studios such as Studio MDHR have continued using the technology for projects following Cuphead.
A Deal Is Far From Certain
Despite the size of the potential transaction, there is no indication that a sale is imminent. Reuters’ sources stressed that discussions remain fluid and could ultimately conclude without an agreement. Unity declined to comment on the report, while PIF and Silver Lake did not immediately provide responses.
That leaves the US$25 billion figure as a proposed valuation rather than an agreed purchase price.
Still, coming only months after the same investment partners helped take Electronic Arts private, talks surrounding Unity show that major consolidation in gaming is not limited to the companies making and publishing games. The technology underpinning them may now be firmly in play too.
