Unity acquisition talks: Silver Lake and PIF report

According to Reuters, Unity held acquisition talks with a consortium that includes Silver Lake and Saudi Arabia's PIF. The valuation discussed was about $25 billion. No deal is certain.

The report appeared on November 5. The same group took EA private in a $55 billion deal that closed in August. Now it is looking at Unity.

What do we know about the Unity acquisition talks?

Reuters relies on people familiar with the matter. They asked not to be named. Unity declined to comment. Silver Lake and PIF did not immediately respond to Reuters.

VGC adds detail on the EA deal. The buyout closed in August. PIF owns 93.4% of EA. Silver Lake owns 5.5%. Affinity Partners owns 1.1%. The Reuters report does not say Affinity took part in the Unity talks.

Silver Lake invested up to $400 million in Unity in 2017. It remains one of the company's largest shareholders. So this is not a new face for Unity. It is an old partner returning to the table.

Which games use Unity?

Unity is one of the largest providers of tools for making games and real-time 3D apps. Reuters says Scopely and Niantic use Unity's engine and tools. Scopely makes Monopoly Go!. Niantic makes Pokemon Go.

There is a notable link. Reuters says Scopely and Niantic are both owned by a group that includes PIF, Silver Lake and Affinity Partners. So the possible buyer group already owns some Unity customers.

How are Unity's latest numbers?

Unity reported third-quarter results on Thursday. Reuters says they beat Wall Street estimates. Revenue rose 32% to $622.1 million. Adjusted earnings were 44 cents per share. Advertising and game development helped growth.

Investing.com says the stock had surged nearly 15% in the regular session after earnings. After the Reuters report it jumped 6.6% to $52.04 in extended trading. Reuters cited about 4% at an earlier moment. The two figures may reflect different moments.

Why does Unity's recent history matter?

VGC recalls Unity's rough years. In October 2023, CEO John Riccitiello stepped down immediately. Weeks earlier the company had announced a plan to charge developers each time a game was installed. It drew a backlash. The plan was partly walked back. In September 2024 the Runtime Fee was scrapped.

In January 2024 Unity laid off 25% of its staff, about 1,800 people. Silver Lake's Egon Durban sits on Unity's board while Silver Lake is a top shareholder. Reuters notes that this dual role would typically lead him to recuse himself from board talks on a sale.

What does this mean for players?

Nothing concrete changes for now. The talks are preliminary. Even with a deal, games made with Unity would not change overnight. The bigger question is ownership concentration. EA, Scopely and Niantic sit under one group. Adding Unity could put games and game-making tools in the same hands.

For more industry context, read our EA classics on Steam post, our Arkane union story and our FM 25 Unity engine feature guide.

Frequently asked questions

Has Unity been acquired?

No. According to Reuters, Unity has only held talks. A deal is not certain, and terms may change.

What valuation was discussed?

Sources say the consortium discussed about $25 billion. That was before Unity's latest earnings report. After the report, its market value rose to roughly $21.5 billion.

What is the link between Unity, Silver Lake and PIF?

Silver Lake owns about 8% of Unity. It invested up to $400 million in 2017. Silver Lake's Egon Durban also sits on Unity's board.

Sources

• CNA (Reuters): Silver Lake, PIF held talks to buy Unity
• Video Games Chronicle: PIF and Silver Lake reportedly in talks to buy Unity
• Investing.com: Unity shares jump on takeover report
• Unity Engine