Sir Peter Jackson's digital effects business sells assets to US game tech company.
Weta Digital has agreed a deal to sell its tools, pipeline, technology and engineering talent to NYSE-listed Unity Software for US$1.625 billion ($2.3b) in cash and shares.
Weta Digital is majority owned by NBR Lister Sir Peter Jackson and Dame Fran Walsh. Former Facebook president Sean Parker is also a significant shareholder.
The deal also represents a big bonus for 8% shareholder and Weta director Joe Letteri, a multiple Academy Award winner involved in hit movies including Lord of the Rings, Dawn of the Planet of the Apes and Avatar.
In a statement, Jackson said Weta Digital’s tools “created unlimited possibilities for us to bring to life the worlds and creatures that originally lived in our imaginations.
“Offering aspiring creatives access to Weta Digital’s technology will be nothing short of game changing and Unity is just the company to bring this vision to life.”
Weta’s visual effects team will continue as a standalone entity known as WetaFX and is expected to become Unity’s largest customer in media and entertainment.
WetaFX will continue to be majority owned by Jackson.
Unity chief executive John Riccitiello said: “We are thrilled to democratize these industry-leading tools and bring the genius of Sir Peter Jackson and Weta’s amazing engineering talent to life for artists everywhere.
“By combining the power of Unity and Weta Digital, the tools and technology that built characters and scenes from the world’s most iconic films such as Avatar, Lord of the Rings, and Wonder Woman, will enable an entirely new generation of creators to build, transform, and distribute stunning RT3D content.”
Under the deal Unity will acquire:
“Weta Digital’s sophistication is represented by dozens of tools that all build on the same, unified pipeline,” said Marc Whitten, Senior Vice President and General Manager of Unity Create.
“Alone, each tool is uniquely powerful, but as a complete platform, they represent a quantum shift in our ability to make it easy for artists to bring their imagination to life and work together like never before.”
Consideration for the acquisition will be cash of US$1b and US$625m of Unity shares.
Alongside the acquisition announcement Unity reported a third quarter loss from operations of US$126.8m from revenue of US$286.3m.
Shares in Unity last traded at US$171.63, valuing the company at US$48.5b.
Unity provides software platforms and tools for video game development. According to its website half of the games on PC, consoles and mobiles were made using its software.
Advisers on the deal included law firm DLA Piper, led by partner Martin Wiseman, who advised Weta Digital as well as shareholders Sean Parker and Prem Akkaraju. Matt Mallett at Morrison Mallett in Wellington advised Jackson and Walsh.
