Unity Software will pay US$1.63 billion (A$2.2 billion) in cash and shares to acquire New Zealand’s Weta Digital, a visual effects (VFX) firm known for its work in films such as “Godzilla vs. Kong” and “Avatar.” The agreement would allow Unity, which develops software for video games and animation, to use Weta Digital’s technology and experience to create VFX tools and focus on metaverse potential.
Peter Jackson formed Weta Digital of “The Lord of the Rings” fame and has won numerous Academy and BAFTA Awards. It is well-known for its computer animation, including Gollum and Caesar from “Planet of the Apes.” Unity, the company that created the software for the famous mobile phone game Temple Run, will release tools for artists and developers in various sectors, including cinema and gaming. “This is where the real money is to be made. This acquisition is all about constructing the platform that will serve as the metaverse’s hub “Franco Granda, an analyst at D.A. Davidson & Co, stated. The metaverse, a buzzword in the IT world after Facebook announced a shift in focus, links people through augmented and virtual reality and may necessitate artists working with new technologies to create real projects.
According to the firms, Weta Digital’s Academy Award-winning visual effects unit, known as WetaFX, will remain a separate organization and is projected to become Unity’s largest customer in the entertainment and media market.
Weta FX would license back the technology and tools from Unity and sign a US$50 million yearly deal and a contract for commercial services, they added. Shares of Unity, which had risen around 12% thus far, fell 8% in extended trade.
