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Unity Software’s $1B+ China Exit? Why This Strategic Review Could Reshape The Entire Investment Thesis!

Unity Software is reportedly evaluating strategic options for its China business, including a potential sale valued at more than $1 billion, according to a recent Bloomberg report citing people familiar with the matter. The company is said to be working with an adviser to gauge interest, though deliberations remain ongoing and no transaction is guaranteed. The development comes at a pivotal moment for Unity, whose shares have plunged roughly 60% year to date after nearly doubling in the prior year. At the same time, management has highlighted accelerating growth in its Vector advertising platform, improving margins, and strong Create momentum in China. Against this backdrop, a potential divestiture raises important questions about capital allocation, geopolitical exposure, competitive positioning, and valuation. For investors, the review could signal strategic focus and balance sheet optionality—or introduce new uncertainty around one of Unity’s fastest-growing international markets.