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Unity to Buy Weta Digital’s Tech Division for $1.6B

  • Unity Software has agreed to acquire Weta Digital’s technology division.
  • The deal is valued at $1.6 billion.
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Unity/Design: Alex Brooks

Unity Software, a 3D game-development platform, has agreed to acquire Weta Digital’s technology division for $1.6 billion in cash and stock. 

A visual effects studio founded by “The Lord of the Rings” director Peter Jackson, Weta Digital offers dozens of tools that Unity will leverage to create characters and settings across digital industries, including video games

“This acquisition is all about building out the platform that will be at the center of the metaverse,” D.A. Davidson & Co. analyst Franco Granda told Reuters. 

Weta Digital will remain a standalone entity, but Unity will acquire 275 of the company’s engineers, who are joining its Creative Solutions division.

  • In August, Unity agreed to buy game-streaming app Parsec for $320 million.
  • The same month, it acquired Oto, a system that builds safe gaming environments.
  • In October, it collaborated with UFC to unveil Metacast, an RT3D sports platform.
  • Last month, it also launched Unity Gaming Services, which simplifies game creation. 

Unity generated $286.3 million in revenue in Q3 2021, a 43% increase year-over-year. The company raised its fiscal 2021 revenue guidance following the strong results. 

Full-year revenue is expected to reach as high as $1.085 billion, a 40% increase compared to FY2020.

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