Saudi Arabia owns EA, and according to a Reuters report, Unity is next

In a recent Reuters report, it was revealed that American investment firms, including Saudi Arabia's Public Investment Fund (PIF) and Silver Lake, are considering acquiring Unity Software, the company behind the multiplatform game engine. The proposed deal, valued at $55 billion, would make Saudi Arabia the owner of EA and Unity.

Silver Lake, which owns approximately 8% of Unity and has invested around $400 million in the company since 2017, also has a seat on Unity's board. This dual role might typically require Egon Durban, a Silver Lake executive, to recuse himself from board discussions concerning a potential sale.

The Unity acquisition discussions have included a valuation of around $25 billion. However, Unity's most recent earnings report showed higher profits than initially estimated. Unity has come a long way since the Runtime Fee scandal, but improvements to the engine have not been its only growth driver. The advertising platform powered by AI, known as Vector, contributed to Unity's first quarterly profit on a generally accepted accounting principles (GAAP) basis since going public in September 2020.

Despite the positive outlook, Unity's situation has raised concerns within the industry. Similar to EA's acquisition aftermath, where the company faced mass layoffs and amassed $18 billion in debt, there is fear that Unity's deal could result in similar consequences. As the videogame industry appears determined to enter a consolidation crisis, where multiple consortiums own significant assets and staff unemployment rises, some may not hold their breath for a smooth transition.