Unity IPO – Here is what you need to know.
Unity IPO – Here is all you need to know about the game development software efforts to raise public funds at a $13.7 billion valuation.
Today, Unity Technologies, the company behind the game-development software, Unity, went public on the New York Stock Exchange under the ticker U. As of 12:45 PM on September 18th, 2020, shares are up over 30%.
For Unity, this means they can raise more funds than before. With a valuation of 13.7 billion, they set the initial share price at $52. So far, the company has been able to raise $1.3 billion from investors
One unique thing that Unity decided is that employees can sell their shares in the company today. This process usually takes up to 180 days to do. In a statement from the CFO of Unity technologies, Kimberly Jabal said,
“We wanted them to be able to participate in the first day of trading if they choose to sell some of their vested shares.”
Employees can sell up to 15% of their shares in the company. However, it is safe to assume that many employees will keep their shares to reap the long-term benefits.
There have been years of hard work leading up to this moment for Unity, who has been the engine behind games like Hearthstone, Crossy Road, and Mario Kart tour. The software gives independent developers a cost-efficient way to create a game. Furthermore, it can be used as educational software for up and coming video game developers.
The software does have some competitors, although it is not so clear who these are. The biggest competition they face is likely from Fortnite creator, Epic Games. Unreal engine is actually how the Fortnite creator got its start in the late 1990s.
Additionally, many massive video game developing enterprises will often go in-house to create their massive video games, which means Unity has a market. Still, unfortunately for them, it does not have a large share in the business to business market.
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