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Silver Lake and Saudi PIF Reportedly Held Talks to Buy Unity at About $25 Billion
Reuters reports that Silver Lake and Saudi Arabia's PIF held recent talks to acquire Unity Software, with a discussed valuation of about $25 billion. No deal is certain.
Unity Software, the company behind one of the most widely used game engines, has reportedly held recent talks to be acquired by a consortium led by private equity firm Silver Lake and Saudi Arabia's Public Investment Fund (PIF). According to Reuters, the buyers discussed a valuation of about $25 billion, but the sources stressed that no deal is certain and its terms could still change.
What happened
Reuters reported on November 5 that Silver Lake and PIF approached Unity in recent weeks. Silver Lake already owns about 8 percent of the company and invested up to $400 million in 2017. Silver Lake's Egon Durban also sits on Unity's board, a position that would normally require him to step back from board deliberations on a sale. Unity has reportedly hired an investment bank to evaluate its options. The company declined to comment, and neither Silver Lake nor PIF responded to Reuters' requests.
The valuation figure was discussed before Unity's latest earnings report, which lifted its market capitalization to roughly $21.5 billion. Unity reported third-quarter revenue of $622.1 million, up 32 percent, with adjusted earnings of 44 cents per share. Inven Global notes that the results marked Unity's first GAAP-profitable quarter since going public, and Yahoo Finance reports that shares rose nearly 15 percent on the earnings day before climbing again after the Reuters report.
The reported bidders are no strangers to big gaming deals. Silver Lake and PIF were both part of the consortium, alongside Affinity Partners, that took Electronic Arts private in a $55 billion buyout that closed in August. Reuters also points out that Unity's engine and tools are already used by Scopely and Niantic, two companies owned by a group that includes the same investors.
Key details
- Reported buyers: Silver Lake, which holds about 8 percent of Unity, and Saudi Arabia's Public Investment Fund
- Valuation discussed: About $25 billion, compared with a market capitalization of roughly $21.5 billion after earnings
- Unity's Q3 2026 results: Revenue of $622.1 million, up 32 percent; adjusted EPS of $0.44; first GAAP-profitable quarter since the IPO
- Current status: Unity is evaluating options with an investment bank; no offer has been announced
- Still unconfirmed: Final price, deal terms and whether talks will turn into a formal offer. Unity and the buyers have not commented publicly.
What it means for developers
- Engine roadmap could shift. Leveraged buyouts usually add debt, and a new owner may push for different priorities in pricing, features or cloud services. Watch for changes to the roadmap before committing to a long project.
- Remember the 2023 Runtime Fee. Unity announced a per-install fee in September 2023, and the backlash was strong enough that the fee was scrapped in September 2024. Licensing shifts can hit small studios fast, so read terms carefully before each major update.
- Audit your dependencies. List the Unity version, packages and cloud services your game relies on. A clear inventory makes it much easier to plan a migration if pricing or policy changes.
- Don't migrate on rumor alone. Talks may never become a deal. Use this as a signal to prepare, not a reason to switch engines mid-production.
- Watch the ad-tech side too. Much of Unity's recent growth came from its advertising business and its AI-powered Vector platform. Changes there could affect monetization and user-acquisition tools that indie teams use.
