Unity to Buy ‘The Lord of the Rings’ VFX Studio Weta Digital in $1.63 Billion Deal

A woman looks at the different characters from the film "The Lord of the Rings" at an exhibition in Potsdam, Germany, on Jan. 30, 2007. Michael Urban /DDP/AFP via Getty Images

Unity Software Inc. will buy Weta Digital, a visual effects (VFX) studio known for its work in movies such as “Godzilla vs. Kong” and “Avatar” in a $1.63 billion cash-and-stock deal, the companies said on Tuesday.

The deal would help Unity, which makes software for video games and animation, tap into Weta Digital’s technology and talent to develop VFX tools and focus on metaverse opportunities.