![]() In fact, even without a takeover, I see Unity poised to capture strong growth tailwinds though the next decade, most notably on the backdrop of AI and AR. While the Unity takeover argument is certainly attractive, my thesis on Unity does not hinge on a speculative deal. Today, Unity is trading at about half the price that AppLovin initially proposed to offer, setting up the stage for an attractive opportunity for AppLovin. Investors should consider that AppLovin ( APP) has offered to buy Unity in August 2022. ![]() Whitehurst has been brought in to explore opportunities for a potential sale of the company - it would match his background. Whitehurst background in leading Red Hat for 12 years, up to a takeover by IBM.Īlthough Unity officially stated that the company will initiate a search for a permanent CEO, I speculate that Mr. Whitehurst has been a "Special Advisor" to Silver Lake, Unity's second-largest shareholder, since March 2021. ![]() Stepping in as the Interim CEO for Unity is James M. They're also some of the biggest fucking idiots. It's a very small portion of the gaming industry that works that way, and some of these people are my favourite people in the world to fight with - they're the most beautiful and pure, brilliant people. Riccitiello called developers who were pushing back on the new monetization strategy "fucking idiots":įerrari and some of the other high-end car manufacturers still use clay and carving knives. This decision comes at a crucial time for Unity, following a period of bad publicity on the company's decision to force developers into a new pricing agreement for Create by retrospectively changing terms of service. On October 9th, the Unity board unexpectedly announced the retirement of John Riccitiello from his roles as President, Chief Executive Officer, Chairman, and Board member, effective immediately. There are quite a few positives for investors: First, with John Riccitiello retiring from all his positions at Unity, the software company is probably open for a takeover bid Second, Unity growth story takes shape on strong secular growth trends, including generative AI and AR Third, Unity shares look reasonably valued now, likely giving investors who buy below $30/ share an upside skew. And in fact, I am now turning cautiously bullish. The thesis was a good call, with Unity shares having lost close to 30% since the time of writing, while the S&P 500 ( SP500 ) has lost less than 10%.Īs Unity stock has undershot my valuation target, I think it is a good time to revisit the Unity investment thesis. You are advised to exercise caution, discretion and independent judgment with regards to the same and seek advice from professionals and certified experts before taking any decisions.īy using this site, you agree to the Terms of Service and Privacy Policy.In August this year I initiate Unity Software ( NYSE: U) with a Sell recommendation, citing concerns on valuation and projecting 20% downside. The content and any output of such tools/analysis is for informational purposes only and should not be relied upon or construed as an investment advice or guarantee for any specific performance/returns advice or considered as recommendation for the purchase or sale of any security or investment. All timestamps are reflected in IST (Indian Standard Time).ĭISCLAIMER: Any and all content on this website including tools/analysis is provided to you only for convenience and on an “as-is, as- available” basis without representation and warranties of any kind. Sensex & BSE Quotes and Nifty & NSE Quotes are real-time and licensed from BSE and NSE respectively. (for corporate data, historical price & volume, F&O data). DATA SOURCES: TickerPlant (for live BSE/NSE quotes service) and Dion Global Solutions Ltd.
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