Unity in reported $25 billion acquisition talks with Silver Lake and PIF
Reuters reports the talks followed an approach, with Unity working with an investment bank to weigh its options; no deal is certain.
Unity has reportedly held acquisition talks with private equity firm Silver Lake and Saudi Arabia's Public Investment Fund at a valuation of $25 billion, according to Reuters. The reported valuation was discussed by a consortium of investors before Unity's latest financial report.
Sources told Reuters that Unity has been working with an investment bank to evaluate its options after the approach. No deal is certain, and the plan and terms may still change, the sources said.
Unity declined to comment. Silver Lake and the Public Investment Fund did not immediately respond to Reuters' request for comment. Silver Lake already holds an 8% stake in the game engine company.
Both investors took part in the $55 billion acquisition of Electronic Arts earlier this year. Silver Lake's involvement with Unity dates back further: it invested $400 million in the company in May 2017, when Unity was valued at $2.6 billion, and was one of four investment firms in a 2019 tender offer to buy up to $525 million of Unity shares at a $6 billion valuation.
Unity's latest financial report showed its first GAAP-profitable quarter and a 32% revenue increase to $622 million, lifting its market capitalisation to about $21.5 billion. That report came after the investors' talks on valuation, according to the Reuters account.
Quick answers
How much is Unity reportedly valued at in the acquisition talks?
Reuters reported that Unity is valued at $25 billion in the talks with Silver Lake and Saudi Arabia's Public Investment Fund.
Has a Unity acquisition been confirmed?
No. Sources told Reuters no deal is certain and the plan and terms may still change. Unity declined to comment.
How big is Silver Lake's stake in Unity?
Silver Lake holds an 8% stake in Unity.