Saudi Arabia's Public Investment Fund (PIF) and investment firm Silver Lake have reportedly been in talks to buy Unity Software, with a potential valuation of around $25 billion, according to Reuters. The talks involve a consortium of investors, including Silver Lake, which already owns around 8% of Unity, and PIF, its sovereign wealth fund.
The discussions are said to be ongoing, with no decision made yet, and there's still a possibility that the terms of the deal may change or the deal may not go through at all. Silver Lake and PIF were recently involved in the acquisition of Electronic Arts in a deal valuing the company at around $55 billion. Silver Lake invested up to $400 million in Unity in 2017 and is still one of its largest shareholders with around 8% of the company.
Unity has delivered numerous rounds of layoffs in recent years, most notably laying off 25% of its workforce, some 1,800 employees, back in January 2024, following a period of significant instability for the company. The company's president and CEO, John Riccitiello, stepped down in October 2023, following a backlash from developers after announcing plans to charge developers every time a game that uses its Unity engine was installed.
These plans were partially walked back following the outcry, and in September 2024, it scrapped its controversial Runtime Fee altogether. The report notes that Silver Lake CEO Egon Durban also sits on Unity's board, which typically means he would have to remove himself from any board discussions about a possible sale.