Unity prepares to go Public: Here's the Breakdown
Everything you need to know about Unity, its plans to go public and what on earth that actually means.
Yesterday, Unity filed a prospectus with the U.S. Securities and Exchange Commission, confirming finally that the engine-makers are preparing to go public. After completing an IPO (or initial public offering), the company will become publicly traded and owned. This basically means it will be listed on the New York Stock Exchange under the ‘ticker symbol’ “U” and investors will be free to buy and sell stocks in the company. The firm, which was founded in a Copenhagen apartment in 2004, is heading towards an IPO after the company was valued at more than $6 billion in May 2019. In the same year, the company reported total revenues of $541.8 million with a yearly increase of 42%.
These revenues should come as no surprise, as Unity is one of the two largest engine developers in the world. Unity reportedly estimated that more than half of all mobile, console and PC games last year took advantage of their proprietary technology. In the rapidly growing VR space, Unity technology is today used to create 60% of all augmented and virtual reality experiences. Moreover, the company believes there’s room for these numbers to grow, projecting a $29 billion market opportunity among gaming and other industries.
This echoes other news we've had around Unity's plans to expand past the primary focus on gaming. Already Unity provides the digital infrastructure for companies like BMW, Tencent and Skanska. A statement from the company explains: “our growth strategy is based, in part, on expanding into new industries beyond gaming.” According to Sylvio Drouin, VP of the Unity Labs R&D team, “Unity wants to be the 3D operating system of the world.”
What does this move mean for consumers? Probably not a whole lot. But there are concerns about the effects the move might have on the Unity's trajectory. Although it opens a fantastic opportunity for investors, some are weary of the decision. Taking a company public means changes in leadership and management and often added pressures to placate shareholders, stoking fears that the move could derail the momentum the company has cultivated so far. And although this highly anticipated development is turning many heads, we are left with a few important questions. What will the initial IPO price be? When is the company expected to go public? For now, we'll all have to stay tuned.