New Zealand-based special effects giant Weta Digital, behind massive hits such as Lord of the Rings and Planet of the Apes trilogy, has been sold to US video game company Unity Software for $1.63 billion dollars.

Weta, co-created by Academy Award-winning director Peter Jackson in 1993, has long been considered the gold standard for visual effects creation, bringing to life the worlds of Avatar (2009), Blade Runner 2049 (2017), and Game of Thrones (2011-2019). 

The deal is considered the latest blow to the film and TV industry in New Zealand following Amazon’s eyebrow-raising decision to move the production of its $1 billion television adaptation of The Lord of the Rings from New Zealand to the UK after wrapping the first season there. LOTR and New Zealand are associated by default, after Peter Jackson shot the JRR Tolkien trilogy back to back there in natural locations, creating the biggest pop culture phenomenon from 2001 to 2003 and winning 17 Oscars.

Today we announced with @unity that #WetaDigital’s industry-leading tools and engineers will join the #Unity team. Our award-winning VFX work will continue as #WetaFX. See the video for more information or read the press release on https://t.co/RGtiuyVfDI https://t.co/qgWeA6xBst

— Weta Digital (@weta_digital) November 10, 2021

The acquisition is meant to aid Unity to delve into Facebook’s virtual reality project Metaverse, with the company acquiring Weta’s technology and engineering assets with the intent of “democratizing” them and “shape the future of the metaverse”. 

Jackson on the other hand will retain majority ownership of WetaFX, a standalone film effects company.