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Silver Lake and Saudi PIF Hold Talks to Buy Unity Software

Following Unity’s first GAAP profit, the approach signals possible consolidation in the games industry through a leveraged buyout.

Overview

  • Sources reported that a consortium led by private equity firm Silver Lake and Saudi Arabia’s Public Investment Fund recently approached Unity about an acquisition.
  • The group discussed a preliminary valuation near $25 billion that was set before Unity’s latest quarter, which lifted the company’s market value to about $21.5 billion.
  • Unity has engaged an investment bank to review options after the approach and no agreement has been reached, with Unity, Silver Lake and PIF declining to comment.
  • Silver Lake already owns roughly 8% of Unity and its executive Egon Durban sits on Unity’s board, a tie that would normally require recusal from sale discussions.
  • If completed as a leveraged buyout like the investors’ $55 billion EA deal, the purchase would take Unity private and could reshape developer relationships and company funding as debt is repaid.