Key Takeaways
- • A consortium led by Saudi Arabia's Public Investment Fund (PIF) and private equity firm Silver Lake has reportedly held talks about a potential takeover of Unity, the game engine and software company, according to reports cited in the primary source.
- • Reports put the potential transaction at around $25 billion, per a secondary outlet; the primary article does not independently confirm that figure.
- • Silver Lake is already among Unity's largest shareholders, having invested up to $400 million in 2017, and its managing director and CEO Egon Durban sits on Unity's board, which could complicate any talks.
- • The reported talks follow the consortium's leveraged buyout of Electronic Arts, valued at $55 billion, which the article links to large layoffs and the closure of BioWare.
- • Unity's recent results are reported as strong, driven by year-on-year growth in its AI-powered ad network Vector.
Summary
The Public Investment Fund of Saudi Arabia and Silver Lake have reportedly held talks with Unity about a potential takeover, according to the primary report. The consortium, which recently completed a leveraged buyout of Electronic Arts valued at $55 billion, is said to be considering Unity, the software company behind the Unity game engine. A separate outlet described the possible transaction as a deal worth roughly $25 billion, though this figure is reported rather than confirmed.
Silver Lake has a prior relationship with Unity. The firm invested up to $400 million in the company in 2017, and is among its largest shareholders. Silver Lake managing director and CEO Egon Durban holds a seat on Unity's board of directors, a position that would likely require him to step back from any takeover discussions.
The article draws a parallel with the EA transaction, which it says involved debt-heavy financing and resulted in cost-cutting measures, including a reported 400 job cuts, the shutdown of BioWare, and the cancellation of a Sims-related project codenamed Project Lotus. The article states that BioWare's closure was largely attributed to EA executives choosing to fund Star Wars Battlefront 3 over Mass Effect 5. If a similar leveraged structure were applied to Unity, the article argues, workforce reductions could follow. It also suggests that Unity's Vector AI-powered ad network, which is contributing to recent year-on-year growth, would likely be a less likely target for cuts.
No deal has been announced, and the reports on the talks remain unconfirmed in the sources provided.
Silver Lake has a prior relationship with Unity. The firm invested up to $400 million in the company in 2017, and is among its largest shareholders. Silver Lake managing director and CEO Egon Durban holds a seat on Unity's board of directors, a position that would likely require him to step back from any takeover discussions.
The article draws a parallel with the EA transaction, which it says involved debt-heavy financing and resulted in cost-cutting measures, including a reported 400 job cuts, the shutdown of BioWare, and the cancellation of a Sims-related project codenamed Project Lotus. The article states that BioWare's closure was largely attributed to EA executives choosing to fund Star Wars Battlefront 3 over Mass Effect 5. If a similar leveraged structure were applied to Unity, the article argues, workforce reductions could follow. It also suggests that Unity's Vector AI-powered ad network, which is contributing to recent year-on-year growth, would likely be a less likely target for cuts.
No deal has been announced, and the reports on the talks remain unconfirmed in the sources provided.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.