“Scary realistic:” What Unity’s latest acquisition means for its future

Unity (NYSE:U) recently made some interesting acquisitions, but one is definitely worth exploring further. In this music video from “The Gaming Show” on Motley Fool live, recorded on February 7Fool contributors Jon Quast and Jose Najarro discuss the video game tech company’s purchase of Ziva Dynamics.

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Jon Quast: I want to ask you about another acquisition. You mentioned Weta, but I know you also wrote, I believe on Ziva Dynamics and I was checking out some of the things Ziva can do. I was blown away by the realism of things with Ziva.

Jose Najarro: I don’t know why it was barely mentioned. I think Ziva is maybe just a bit smaller than Weta. Ziva, they work great for creating real digital avatars. Their goal is to make sure that the skin, the tissues, the way the muscles move in some of these avatars look realistic. On their earnings call, they actually brought up I forgot her name, it was – If you go to their YouTube platform, they show her. It’s a digital avatar that runs behind the Unity platform. It looks really realistic.

Quest: Scary realistic.

Najarro: Yes. That’s why I think there’s a lot of talk about the potentials of these avatars. Maybe not overtake, but we might start to see them enter the consumer market. Hey, maybe if you go to a drive-thru, one of those digital avatars could take your order.

If you are checking into a hotel there may be your typical where you go to speak in person or you can go to the other line where it is more like a quick digital avatar that can help you. But another thing that they mentioned with Ziva Dynamics, I believe they’re called, the acquisition is that Ziva has been very good at bringing in tools from visual studios and kind of tying it into gaming technology.

For example, Unity is gaming technology at heart. When they bought Weta, it was more about visual studio technology. The reason they also bought Ziva was to buy this bridge. I think it was a very good decision. They’re going to use this technology that Ziva already has to make this integration with Weta and Unity a lot easier where they don’t have to spend all this money on research and development and focus on building this bridge. I think Unity’s management is very successful with its acquisitions. For now, I am satisfied with all the acquisitions they have made.

Jon Quast owns Unity Software Inc. Jose Najarro owns Unity Software Inc. The Motley Fool owns and recommends Unity Software Inc. The Motley Fool has a Disclosure Policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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