The visual effects division of Peter Jackson's visual effects studio Weta Digital has been acquired by game engine maker Unity. Weta Digital will continue to be the name of the department that is responsible for the technical tools used by the corporation. 

The name of Jackson's company will be WetaFX (Weta Digital). Weta Digital, which has worked on films such as The Lord of the Rings and Avatar, is being acquired by Unity Technologies, a video game development company. The technology underlying games such as Pokémon Go and Call of Duty: Mobile is provided by Unity Technologies.

"Together, Unity and Weta Digital can create a pathway for any artist, from any industry, to be able to leverage these incredibly creative and powerful tools," Sir Peter said in a statement.

BBC -  Weta, which was co-funded by Sir Peter in 1993, is known for creating animated characters such as Avatar's Neyriti, Gollum in the Lord of the Rings film series and Caesar from Planet of the Apes.

"For the southern hemisphere, Weta is our version of Hollywood," Sydney-based film critic James Fletcher told the BBC. "Peter Jackson is a visionary filmmaker. He didn't have the tools he needed to achieve the results he wanted so he put a team together," he added.

Under the deal the company will be split up, with its technology assets being sold to Unity as Weta Digital. Its visual effects business will remain as a separate company called WetaFX, which is expected to become one of Unity's largest customers. Weta told the BBC that Sir Peter, along with the company's digital artists, will be "staying in New Zealand and continuing to make movies here."

In a statement, Unity said it will "put Weta's incredibly exclusive and sophisticated visual effects tools into the hands of millions of creators and artists around the world" enabling them to shape the future of the metaverse. The term metaverse has come into wider mainstream use in recent weeks after Facebook said last month that it would change its name to Meta to better reflect its new focus on connecting users through augmented and virtual reality.

"This deal is actually quite exciting," said Mr Fletcher. "They'll be able to make this technology available to filmmakers. It's really going to be a disruptive deal and be beneficial to creatives all around the world."

After the announcement of cash-and-stock deal Unity's shares fell by more than 6% in extended trade on the New York Stock Exchange.

Creator of the Unity purchases Peter Jacksons visual effects studio for $1.6bn