- Unity Software ( NYSE: U ) is in talks to spin off its China unit to power expansion, Reuters reports.
- That would come through strategic investors into a business valued over $1B, according to the report.
- Unity stock has risen 5.9% to a monthlong high.
- The company would like to see its code used more widely in China, extending beyond games and into industrial design and city modeling, and potential investors in the Chinese unit are also holding big bets on the metaverse, according to the report.
- A spin-off would provide more local ownership and autonomy which could bring more freedom for that expansion.
- Unity's game engine powers many of China's most popular games, including Genshin Impact and even Tencent's ( OTCPK:TCEHY ) Honor of Kings - though Unity competes with Unreal Engine 5 , made by rival Epic Games (which is backed by Tencent).
- Unity entered China in 2012.
For further details see:
Unity in talks to spin off China unit as it looks beyond games - Reuters