Abstract:
According to Reuters, citing unnamed people familiar with the matter, an investor consortium composed of U.S. private equity firm Silver Lake Partners and Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), has made an acquisition offer to Unity Software, valuing the company at approximately US$25 billion. It is reported that Unity is seriously considering the offer and has hired an investment bank to provide advice.
The offer came weeks before Unity released its third-quarter financial report, the report said. The financial report shows that Unity’s strategic business revenue increased by 59% year-on-year, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 134%. After the financial report was released, the company's stock price rose by about 4%, and its market value rose to approximately US$21.5 billion.
It is unclear whether the offer will be adjusted based on the latest market valuations, or whether previous growth expectations have been factored into the original offer. In any case, Unity has not made a decision on this yet. According to reports, as of November 6, the two parties have not reached any agreement, and none of the companies involved has confirmed or denied the news.
It is worth noting that Silver Lake Capital currently holds approximately 8% to 9% of Unity’s shares through multiple investments over the past decade. The private equity firm participated in Unity's $400 million funding round in 2017, which valued Unity at $2.6 billion at the time. In 2019, Silver Lake Capital participated in a secondary tender offer to purchase up to $525 million in shares from Unity common shareholders at a valuation of $6 billion.
In addition to Unity, Silver Lake Capital also holds shares in other video game companies. In August 2026, a consortium composed of Silver Lake Capital, PIF and Jared Kushner's Affinity Partners completed a leveraged buyout of the gaming giant Electronic Arts worth US$55 billion, becoming one of the more controversial M&A transactions in the industry in recent years.
After the acquisition was completed, the new owners initiated a series of cost-cutting measures, including closing BioWare Studios. This studio has created classic role-playing games such as "Mass Effect", "Baldur's Gate", "Neverwinter Nights", "Star Wars: Knights of the Old Republic" and "Jade Empire". The closure also brings an end to the next installment in the "Mass Effect" series (unofficially known as "Mass Effect 5").
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