Unity Takeover Valuation Reaches $25 Billion in Talks Involving Saudi Public Investment Fund
Key Facts
Unity Software recently held talks over a potential takeover by a consortium that includes Silver Lake Partners and Saudi Arabia’s Public Investment Fund, according to people familiar with the matter cited by Reuters on November 5, 2026. The talks signal interest in buying the gaming software company, though no deal has been finalized. Investors discussed valuing the company at about $25 billion before its latest results, Reuters reported. After the results were announced, Unity’s market capitalization stood at about $21.5 billion, a figure separate from the valuation discussed by the consortium. The stock rose about 15% in regular trading on November 5, then climbed 6.6% to $52.04 by 19:16 Eastern time following Reuters’ report, according to Investing.com.
Reuters said Silver Lake and the Public Investment Fund had approached Unity in recent weeks, and that Silver Lake owned about 8% of the company. Unity is working with an investment bank to assess its options after receiving the offer, according to the report. Reuters added that completion of a deal is not guaranteed and that the plan and its terms could change. Investors’ interest puts the company in line for a possible transfer of ownership to an investment consortium, while options remain under review. The report did not cite a final decision by Unity or a timetable for completing any deal.
The talks coincided with strong quarterly results Unity announced on November 5, after releasing third-quarter results before the market opened and scheduling its webcast for 8:30 a.m. Eastern time, according to a company announcement. Revenue was $622.092 million, compared with $470.615 million in the third quarter of 2025, an annual increase of 32%, according to the earnings release. Investing.com put analysts’ revenue forecasts at about $566 million, meaning reported revenue exceeded that estimate. The company also posted adjusted earnings of 44 cents a share, according to Reuters. Reuters said the results beat Wall Street estimates, supported by growth in advertising and game development.
Unity posted net income of $122 million in the third quarter, with a net income margin of 20%, according to Investing.com. It was the first time the company had reported a quarterly profit under generally accepted accounting principles since its September 2020 IPO, Reuters said. Reuters attributed part of the return to profitability to growth in its AI-powered Vector advertising platform. Vector revenue rose 126% year over year during the quarter, while the number of active advertiser accounts on the platform increased 27% from the previous quarter, according to Investing.com. The company said growth in advertising and game development helped support quarterly performance.
Vector’s quarterly growth exceeded the pace set by management, with platform revenue rising 40% from the previous quarter, compared with management’s previous guidance for quarterly growth of 20%, according to Investing.com. Year over year, platform revenue growth reached 126% in the third quarter, the same source said. Business momentum also showed in the company’s fourth-quarter 2026 outlook, which included strategic revenue of between $683 million and $691 million, an annual increase of between 65% and 67%. Unity estimated Grow segment revenue at between $515 million and $520 million, with annual growth of between 105% and 107%. Create segment revenue was forecast to range from $168 million to $171 million, up between 4% and 6% year over year.
The significance of investor interest extends beyond the value of the offer to its timing: the consortium discussed a valuation of about $25 billion before the third-quarter results, and the company’s market capitalization then rose to about $21.5 billion after the results, according to Reuters. The group includes the same investors who participated in a consortium that acquired Electronic Arts in a $55 billion deal that closed in August 2026, the report said. The report noted that the earlier deal took the developer of “EA Sports FC” into private ownership. For Unity, talks remain at the stage of assessing options, and no deal has been confirmed. The next step will remain tied to the company’s review of its options with the investment bank, with no date announced for a decision.