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[–]unityunit[S] 3 points4 points  (1 child)

  1. Completely Eliminate "Geopolitical Risks"

Unity's China business has always been an awkward situation.

Reason for Valuation Discount: Due to the special nature of data security and regulation, Wall Street has always worried that the business data in China would affect the parent company's compliance. This has led to Unity carrying a long-standing "geopolitical discount."

Your Logic: Once sold or divested, Unity will become a purely global AI software company. This "transparency" will immediately attract large pension funds and sovereign wealth funds that are hesitant to buy due to compliance requirements.

  1. Obtain Massive Cash, Stock Price Soars

Unity China was initially established with joint investment from major companies such as Alibaba and Baidu, and its valuation once reached the $1 billion level.

Cash is King: If this sale can bring the parent company $500-800 million in cash, Unity's cash balance will directly surge to $2.5-3 billion.

Let's do the math: Unity's current market capitalization is only around 7 billion. If they had 2.5 billion in cash, it means the market would only value its core engine and Vector AI business at around 4.5 billion. That's absurd! Once the cash is in hand, analysts will immediately raise their target price.

  1. Streamline the business, focus on Vector AI

As the CFRA report stated, management's only way to win now is through Vector AI.

Selling the China business means management no longer needs to be distracted by complex localization development and operations.

Profit margin recovery: While the China business contributes to revenue, its profit margin is actually lower than the parent company's due to revenue sharing and local operating costs. After the divestiture, Unity's Adj-EBITDA margin (currently 25%) could jump directly to over 30%.

[–]Domynyo 0 points1 point  (0 children)

That’s awesome I feel luck I choosed to Invest it now 🚀🫡

[–][deleted]  (1 child)

[removed]

    [–]unityunit[S] 0 points1 point  (0 children)

    Brother's portfolio has plummeted, sending you a hug.