Report: Silver Lake and the Saudi Arabia PIF hold talks with Unity to explore acquisition

Silver Lake and Saudi Arabia’s Public Investment Fund (PIF) are in early-stage talks to acquire Unity Software, according to Reuters. The two firms recently completed a leveraged buyout of Electronic Arts, taking the company private. A consortium led by Silver Lake—partially owned by Jared Kushner—and PIF is reportedly considering a full buyout of Unity, with funding structured similarly to the EA deal. The proposed acquisition would follow the leveraged buyout model, where debt is repaid using the target company’s operating profits.

Unity Software, whose game engine powers over half of all mobile games and a significant share of console and PC titles, is evaluating the offer. The company has expanded into AI-driven tools, including Unity Spark, a prompt-based game creation system developed with Google. Unity’s recent shift to Runtime Fees in 2024, which would have charged developers per install, was abandoned after widespread developer backlash, contributing to former CEO John Riccitiello’s resignation.

The potential buyout comes amid Unity’s financial and strategic challenges, including declining stock prices and internal restructuring. Current CEO Matthew Bromberg, a former EA executive, has overseen cost-cutting measures, including the closure of BioWare, a studio EA shuttered as it works to service its own leveraged buyout debt. Unity’s direct engagement with individual developers exposes it to heightened reputational risks compared to EA, which operates primarily as a publisher.

Analysts warn that a takeover by Silver Lake and PIF could disrupt Unity’s core business, particularly its relationships with developers. The investors’ track record with EA and their growing influence in gaming raise questions about long-term strategy and operational stability for Unity, a critical infrastructure provider for the industry.