Unity is a likely takeover target for AI firms due to its engine and ad data; it also has independent growth potential via Unity Vector.

And now, Rachel, I'm going to move here to arrow number three. As for the third arrow, I will talk about "Unity Software". Okay, first a quick overview before I explain why I think this company might be a target for acquisition.

The focus will be more on the role of artificial intelligence. But Unity Software is a software company, isn't it? Its market value is currently around $20 billion, and we are recording this video in mid-September 2026.

Unity is famous for its engine for developing 3D games in real time. So, if you're designing a game, they have this huge engine that helps you design it. It is widely used in games, but it can also be used in various other fields .

But the most important story is that the company has adopted a two- sector structure. First, there are the Create Solutions. These solutions support the engine tools I just talked about to help developers build games and interactive content, which is especially important now with the emergence of the world of real-life twins, or virtual twins as I think , where we see people designing things online before mass-producing them .

The second thing is growth solutions. This is their other market, which is the advertising revenue generation and audience development sector. They have now focused on an AI-powered advertising platform called " Unity Vector".

Well , now that we understand that it has an advertising sector and a construction sector with a very powerful engine that is used globally. My current way of thinking is that artificial intelligence models have become extremely powerful, and we see different models trying to excel at specific tasks.

One of the things I saw was Elon Musk talking about "Grok," where they aspire for "Grok" to be very good at game design . Is it impossible to think that a company like " Groc" or any AI company that wants to be the best in game design or interactive solutions, might purchase one of these software solutions and integrate it into its AI to become a huge platform for creating games or any kind of AI model for designing interactive games?

So, this is the essence of my thinking about why I believe it might be a takeover target. I may be completely wrong, but if there is a reason to buy Unity, I think it would be this.

As an acquisition, not as an investment in stocks.

Now, a quick overview of the financial data. In their most recent financial quarter, the second quarter they announced on August 6, revenues were around $550 million, a 24% year-over-year increase.

Their strategic revenues, which include everything except any legacy business lines, have increased by 38% year-on-year.

One of the most important things this company has done in the past few years is to move away from some activities that were not growing, but it still retains some of those activities.

Therefore, they actually want to focus only on the strategic revenue streams they wish to continue to pursue , and this sector alone has achieved 38% year-on-year growth.

Unfortunately, this company is still suffering from a net loss. However , free cash flow reached 202 million, an increase of 59% year-on-year, and the company currently enjoys a positive net cash position . This is extremely exciting.

The growth opportunity here lies in Unity Vector, an AI- powered advertising platform . And one more thing, isn't that right? We want to see AI companies trying to find new ways to make a profit.

If they were somehow able to acquire the advertising solution and make it part of their own platform as well, I think it would be extremely useful. So, this is my choice here for Unity.

The big risk is that this company has gone through many ups and downs, management changes, and many other things that have happened to it over the past five years, so there are many aspects that can be criticized in terms of risk.

Regardless, I believe the opportunity exists even without an acquisition. I believe this era of AI proxies could be very beneficial for many software companies that have huge datasets, and Unity certainly falls within that category.

Yes, and Vector, their AI advertising engine, reportedly grew by about 80% year-over-year, even as the rest of the company's businesses were trying to overcome their problems.

So, it's an asset that I think many companies would like, not for the games themselves, but for the data and advertising infrastructure that lies beneath them. Some interesting names to keep an eye on.

So, Unity, Ambrella, and Target or Tarjay are three companies that we believe could be interesting acquisition targets.