EA‘s new owners, Saudi Arabia’s Public Investment Fund (PIF) and its close business ally, Silver Lake Partners, are reportedly in talks to buy Unity Software, the company behind the video game engine of the same name. Working with some other investment firms, PIF and Silver Lake acquired EA in a massive $55 billion deal, and their reported offer for Unity could also reach billions.
Saudi Arabia is gradually expanding its influence over the global entertainment market. Through PIF, it has already acquired significant stakes in video game companies such as Scopely and Niantic, which are behind popular titles like Monopoly Go! and Pokemon GO. Now, Saudi investors appear to be looking to strengthen their influence over the video game industry by purchasing one of the most popular tools developers use to make games: Unity.
EA’s New Owners Are Reportedly in Talks to Buy Unity
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GameRant | Source images: Electronic Arts -
Image via PIF -
Image via EA
A new report by Reuters says, “Gaming software provider Unity Software (U.N) has held recent talks to be acquired by a consortium of investors, including private equity firm Silver Lake Partners and Saudi Arabia’s sovereign wealth fund PIF.” The renowned software company is also believed to be valued at about $20 to $25 billion, and Unity is reportedly discussing its options with an investment bank.
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Interestingly, Silver Lake is already a Unity shareholder. The Reuters report reveals that the firm owns approximately 8% of the company’s shares and invested $400 million in the company back in 2017. Unity, the engine behind many popular video games, went public in 2020 and has reported notable growth in recent months. Reuters cites the company’s latest earnings report, stating that “[Unity’s] revenue rose 32% to $622.1 million, and adjusted earnings were 44 cents per share.” These figures exceeded some forecasts, which may have made Unity a more attractive target for Saudi investors.
The Reuters report also notes that Unity, PIF, and Silver Lake have yet to reach an agreement. The parties appear to still be in the negotiation phase, and if the talks move forward, they are expected to make the process public. A similar process took place during PIF and Silver Lake’s acquisition of EA, with the consortium reporting each major step of the deal to the US Securities and Exchange Commission (SEC).
While Saudi investors and Silver Lake assured fans that their acquisition of EA would not affect the company’s values or creative processes, some have argued that the recent layoffs at EA could be connected to the deal. Now, early signs of a possible deal between the same investors and Unity have raised concerns among developers and gamers that the reported acquisition could have unwanted effects on the popular platform. However, only time will tell what lies ahead for Unity if the deal moves forward.
