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According to media reports, four people familiar with the matter said that the well-known game engine developer Unity Software is in talks to spin off the Chinese unit to help it in China, the world's largest game market. Expansion and push it to expand its game-making software technology into new technologies such as the Metaverse.

　　If the spin-off plan goes through, it would be one of the biggest deals in the domestic tech industry this year.

　　Unity is a well-known American game engine developer headquartered in San Francisco, USA. Unity entered China in 2012, and its eponymous software, the Unity engine, is the most popular game development engine in the world, and it also powers many well-known mobile games in China, such as Tencent's Honor of Kings and Mihayou's Genshin Impact.

　　Unity plans to spin off its China unit

　　Media reports, citing people familiar with the matter, said Unity is looking for strategic investors to work with and is negotiating a business valued at more than $1 billion.

　　Unity is said to be planning to spin off the business because it wants to see its software find wider use in China, in areas ranging from smart cities and industrial design to the metaverse.

　　According to people familiar with the matter, potential investors who have been negotiating with Unity before have made big bets on the metaverse.

　　Unity believes the spin-off will help its expansion in the Chinese market, as it will give its Chinese unit more operational autonomy, which could also increase its appeal to local governments and state-owned partners, the people said. force.

　　The spinoff will be one of China's biggest tech deals this year. Zhang Junbo, the president of Unity's Greater China region, has been working on the plan for at least a year, two of the people said.

　　Unity has revealed it will expand aggressively in China

　　Its spinoff plan had been delayed for a while, they said, as U.S. tech stocks weakened, sending Unity’s stock down nearly 80 percent from its November 2021 high.

　　Zhang Junbo disclosed to the media about Unity's expansion plans in China last month, but did not mention the split plan.

　　He said at the time: "Because the Chinese market is large enough, there are many unique needs in the field of digital twins, which are not the same as the world. Now China is also focusing on technical security and controllability, so we also want to cater to this general trend."

　　Zhang Junbo also revealed at the time that thousands of engineers will be recruited in China in the next few years, and branches in Beijing and Guangzhou will be expanded in addition to the Shanghai base.

　　Unity’s Shanghai-based employees have been asked to sign contracts with the new company and are currently negotiating an operating budget related to the spinoff plan, two of the people said.