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Speculation that Apple could make a move to acquire Unity Technologies, following legal upsets impacting its App Store revenues
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Industry analyst Joost van Dreunen suggests Apple might buy Unity to “lock the supply chain”
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Unity stock has surged 25% in the past 5 days, a potential Apple acquisition could be transformative for both companies
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Narratives simplify complex investment decisions. Our investment community regularly shares and refines perspectives on Unity, helping investors navigate fast-moving developments in both the game development and technology spaces.
For Unity, the current narrative hinges on two intertwined themes: operational transformation and the success of the Vector ad platform. Following Apple’s legal defeat to Epic Games—resulting in the loss of its control over App Store purchasing fees—industry analyst Joost van Dreunen floated the idea that Apple could acquire Unity Technologies. Unity’s dominance as the engine behind over 70% of mobile games, plus its full integration into Apple Vision Pro, would allow Apple to both strengthen its platform and potentially shut out a major Epic competitor.
This scenario is notable in the context of Unity’s transition: investments in AI, subscription upgrades, and operational discipline are all expected to lay the groundwork for a more predictable, higher-margin business. At the same time, the company is broadening its footprint into non-gaming verticals—recent partnerships with Toyota and Raytheon reflect a 50% jump in revenue from the industrial segment, signaling meaningful progress in diversification.
However the company has lost the trust game development community in recent years after changing their…
Read the full narrative on Unity (it’s free!)
Unity’s narrative implies meaningful revenue and earnings expansion, albeit with significant execution risk. Analysts forecast 6.3% annual sales growth over the next three years, but don’t expect Unity to reach profitability in that period. Should profit margins rise to the industry average of 12% by 2028, Unity could see earnings per share rise from -$1.39 to $0.55, with earnings of $262.4 million—an ambitious jump from today’s negative $664.1 million.
Even with these forecasts Unity is trading around fair value – find out why.
Simply Wall St Community members provided 33 fair value estimates ranging from US$11 to US$36 per share. With the AR/ VR boom is over, some investors don’t see much upside.
