Post AZqniB18boVBkUNhya by crash@mastodon.gamedev.place
 (DIR) More posts by crash@mastodon.gamedev.place
 (DIR) Post #AZqnhpOmzCLghTHHmq by crash@mastodon.gamedev.place
       2023-09-17T06:18:07Z
       
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       Some things I noticed while looking through #Unity's 10-K SEC filings. Unity reported a $920M net loss between 2021 and 2022 — probably not a surprise to you — and yet their cash reserves only decreased by $227M. Why?Unity covered the difference by selling *all* of their their short-term investments (T-bills and bonds) to raise cash. They rolled over $101M into new T-bills, but that's it. Beyond that, they can't go to that well again.So what else is there in the asset column? Well..
       
 (DIR) Post #AZqni1Uu0IMwDuEKyu by crash@mastodon.gamedev.place
       2023-09-17T06:21:56Z
       
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       The balance sheet lists $2,365M in current assets - that's cash, bonds, and accounts receivable. Then there's $5,470 in non-current assets. $1,922M of that is "intangible assets" - the value of their engine tech & codebase.  $3,200M is "goodwill" - which is the difference between what they paid for an acquisition and what the acquisition was worth on paper when they bought it. Basically, it's the premium they paid to buy ...
       
 (DIR) Post #AZqni5qfpIA1iaRmTI by crash@mastodon.gamedev.place
       2023-09-17T06:33:31Z
       
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       ... a few companies over just the last couple years. At the start of 2021, Unity had $286M in goodwill. Then in 2021, they paid $128M for Ziva Dynamics (which had $23M assets), $333M for Parsec ($50M in assets), and $1000M ($668M assets). Plus some other acquisitions.In 2022, they paid $2915M (mostly in stock) for ironSource ($1372M in assets). So over just two years, goodwill grew from $286M to $3201M.
       
 (DIR) Post #AZqniB18boVBkUNhya by crash@mastodon.gamedev.place
       2023-09-17T06:38:46Z
       
       1 likes, 0 repeats
       
       So, as of their most recent 10-K filing, Unity has the following assets:$1,587M in cash/t-bills$634M in accounts receivable.$1922M value on their own engine/tech$3201M premiums they paid for the companies they acquired, in excess of the assets those companies had.
       
 (DIR) Post #AZqniI6iFU7Xjo2l8a by aras@mastodon.gamedev.place
       2023-09-17T06:59:58Z
       
       1 likes, 1 repeats
       
       @crash Unity went *really hard* on acquisition spree in 2019-2021. Many of them even internally felt a bit “wait why”.
       
 (DIR) Post #AZqniy1sNrCvky6UQi by crash@mastodon.gamedev.place
       2023-09-17T07:01:08Z
       
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       @aras Indeed they did. I hadn't realized quite how much of a premium they paid in those acquisitions.
       
 (DIR) Post #AZqniyktgTDi0bARbU by aras@mastodon.gamedev.place
       2023-09-17T07:03:44Z
       
       1 likes, 0 repeats
       
       @crash “money is free and will continue to be free forever!” I guess
       
 (DIR) Post #AZqnjgtxY8c4vRkIq0 by crash@mastodon.gamedev.place
       2023-09-17T07:05:04Z
       
       1 likes, 0 repeats
       
       @aras Those heady, carefree days of Zero Interest Rate borrowing
       
 (DIR) Post #AZqnpw3E8YyVeG3fVo by thendrix@social.hendrixgames.com
       2023-09-17T07:09:43.298037Z
       
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       Maybe they’ll get bought out after Disney. Saudi prince or random billionaire looking for a fire sale?