PIF eyes USD 25 bn take-private of Unity Software

PIF is lining up another big gaming move: The Saudi Public Investment Fund (PIF) and private equity firm Silver Lake are in talks to take Unity Software private, with the consortium having floated a valuation of around USD 25 bn, Reuters reports, citing sources familiar with the matter. Silver Lake already holds about 8% of the game-software maker, and the two are fresh off taking Electronic Arts private together this year.

Where talks stand: The USD 25 bn figure was floated before Unity’s latest results lifted its market value to about USD 21.5 bn, pitching the mooted price above where the shares trade now. Unity has brought in an investment bank to weigh its options since the approach, though the sources cautioned nothing is locked in and terms could still shift. A completed agreement would rank among the largest software buyouts in years.

What Unity does: Unity’s engine — the toolset developers use to build and run interactive 3D content on any device — powers thousands of games across mobile, consoles, and PCs. Founded in Denmark in 2004 and now based in San Francisco, the company has expanded from that core engine into advertising technology and other real-time 3D software. Beyond gaming, its tools are used in carmaking, film, architecture, and industrial simulation.

The pieces already connect: Unity’s engine and developer tools are used by Scopely, the maker of Monopoly Go!, and Niantic, which was behind Pokémon Go — both held by a group that already includes PIF, Silver Lake, and Affinity Partners. Silver Lake’s own ties run deeper, since it put up to USD 400 mn into Unity in 2017 and remains one of its largest shareholders.

What’s in it for PIF? The takeover would broaden the fund’s gaming strategy to include software infrastructure that much of the industry runs on. Gaming and esports are named strategic sectors in PIF’s 2026-2030 strategy, and a stake in Unity would give it ownership of the tooling behind games it already co-owns.

Unity is going strong: The company beat Wall Street estimates in 3Q, reporting on Thursday that revenue rose 32% to USD 622.1 mn, with adjusted earnings per share of USD 0.44. Growth in its AI-powered Vector ad platform helped Unity post its first quarterly net income on a GAAP basis since its September 2020 listing.

REMEMBER- PIF and Silver Lake took Electronic Arts private earlier this year in a USD 55 bn transaction, with PIF holding a 93.4% controlling stake and Silver Lake (5.5%) and Jared Kushner’s Affinity Partners (1.1%) splitting the rest. Unity would be the second gaming asset the two have pulled private together.