Unity Software has held talks to be acquired by a consortium including private equity firm Silver Lake and Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, Reuters reported on Thursday, 5 November 2026. The investors discussed a valuation of about $25 billion for the San Francisco game-software maker, whose shares jumped after the report.
The Unity takeover talks are at an early stage, and there is no guarantee a deal will happen. Unity has hired an investment bank to weigh its options after the approach, while the price and the shape of any transaction could still change.
A $25 billion valuation, and a moving target
The buyer group discussed a valuation of about $25 billion in recent weeks, before Unity’s latest earnings lifted its market value to roughly $21.5 billion, according to two people familiar with the confidential discussions. That gap between the discussed price and the market value is now part of the negotiation.
Unity declined to comment on the report, and Silver Lake and the PIF did not immediately respond to requests for comment. The talks were first reported by Reuters, which cited the two sources.
| Detail | What is reported |
|---|---|
| Discussed valuation | About $25 billion |
| Unity market value after earnings | Roughly $21.5 billion |
| Silver Lake’s existing stake | About 8% |
| Buyers | Silver Lake and Saudi Arabia’s PIF |
| Status | Talks held; no deal agreed |
Why Silver Lake already knows Unity well
Silver Lake is no stranger to Unity. The firm invested up to $400 million in the company in 2017, and its co-chief executive, Egon Durban, sits on Unity’s board. Silver Lake now holds about 8% of the company, making it one of its largest shareholders.
That history matters because a buyer that already owns a stake and holds a board seat starts from a position of familiarity. Directors in that position would normally step aside from any sale process, a point the Reuters report also noted.
Unity’s strongest quarter arrived first
The approach landed on the same day Unity reported its best quarter as a public company. Unity’s third-quarter results, published on 5 November, showed revenue of $622 million, up 32% from a year earlier and ahead of the roughly $567 million analysts had expected.
The company also posted its first profit under standard accounting rules since its 2020 stock market debut: net income of $122 million, against a $127 million loss in the same quarter last year. Chief executive Matt Bromberg called it the company’s strongest quarter yet.
| Unity Q3 2026 | Figure |
|---|---|
| Revenue | $622 million, up 32% year over year |
| GAAP net income | $122 million, vs a $127 million loss a year earlier |
| Diluted earnings per share | $0.25, vs a $0.30 loss |
| Vector ad platform | Revenue up 126% year over year |
| Adjusted EBITDA | $257 million, vs $109 million |
| Q4 guidance | Strategic revenue of $683–691 million |
The engine of the quarter was not the game engine itself but Vector, Unity’s AI-powered advertising system, which grew 126% from a year earlier. Its Grow Solutions advertising division brought in $457 million, up 44%, and now accounts for well over two-thirds of total revenue.
Investors reacted quickly. Unity shares rose about 15% in regular trading on Thursday, a day when the Nasdaq plunged into correction territory, and gained a further 6.6% after hours to $52.04.
The Electronic Arts playbook
The Unity takeover talks follow the same buyers’ last big move in gaming. Silver Lake and the PIF were part of the consortium that took Electronic Arts private in a $55 billion deal that closed on 4 August 2026, paying EA shareholders $210 in cash per share.
A Unity deal would extend that strategy from a games publisher to the tools that games are built with. Unity’s engine powers thousands of mobile, PC and console titles, including games from Scopely, the maker of Monopoly Go, and Niantic, the company behind Pokémon Go.
The PIF’s gaming ambitions run wider still. Its subsidiary Savvy Games Group already works with Unity under an agreement to support game development in Saudi Arabia, and reports in September said the fund was considering merging Electronic Arts with Savvy to bring its gaming businesses under one roof.
What investors are watching now
For now, the Unity takeover talks remain unconfirmed by the parties themselves, and the reporting is clear that the terms could change or the talks could end without a deal. Any agreement would still need approval from Unity’s board and its shareholders.
The timing adds pressure on both sides. Unity’s strong quarter and rising share price strengthen its hand, while the buyers’ discussed $25 billion figure was set before those results. Whether the two sides can close that gap will decide whether the biggest gaming deal of the year gets done — or joins the list of approaches that went nowhere.
The pattern is familiar in this deal cycle. DoorDash agreed to buy Instacart in a $17 billion deal last month, and consolidation has been running through technology and consumer companies all year. Gaming, with its mix of content, tools and advertising, is now firmly part of that wave.
