Publications
Publications
- June 2024
- HBS Case Collection
Arete Research on Unity Software
By: Joseph Pacelli and Tonia Labruyere
Abstract
Richard Kramer had founded Arete Research, an independent financial research provider, in 2000 after a successful career as a sell-side analyst at Goldman Sachs. He reflects on his team's coverage of Unity Software, a U.S.-based mobile games software company, that Arete had been covering ever since its IPO in 2020. Arete had openly questioned Unity's business model in its reports, and doubted the high valuations and target prices that sell-side analysts attributed to the stock. Arete was particularly doubtful of the future success of Unity's adtech business division and the related acquisition of the Israeli company ironSource.
Keywords
Analysis; Initial Public Offering; Analytics and Data Science; Applications and Software; Mobile and Wireless Technology; Valuation; Value Creation; Mergers and Acquisitions; Business Model; Reports; Financial Services Industry; Video Game Industry; United Kingdom; United States
Citation
Pacelli, Joseph, and Tonia Labruyere. "Arete Research on Unity Software." Harvard Business School Case 124-086, June 2024.