Unity Software beat analyst estimates for third-quarter earnings and revenue, and reported its first GAAP-profitable quarter since its IPO. Its fourth-quarter sales guidance also exceeded market expectations. On Nov. 6, reports said a consortium led by Saudi Arabia’s Public Investment Fund and Silver Lake, which owns an 8% stake in Unity, was in talks to acquire the company; earlier reports cited a $25 billion deal, while newer reports put the value at about $21.5 billion. Unity is working with an investment bank to evaluate its options, and its shares rose 5.5% premarket after the reports; the company declined to comment.
Revenue rose 32% in the third quarter, and the company returned to GAAP profitability as investors discuss a valuation of about $25 billion.
Read the full storyPreliminary talks coincided with the company’s first quarterly GAAP profit since its public listing and a 32% year-over-year increase in third-quarter revenue.
Unity Software is reportedly considering a $25 billion acquisition offer from Silver Lake and Saudi Arabia’s PIF following its first profitable quarter.