The Catch Up

Modern Times Group (MTG) transitioned through a transformative period in 2024 and early 2025, shifting from a mid-sized gaming collective to a top-ten mobile games developer in Western markets. The group reported 2024 revenues of SEK 6,015 million, representing 3% currency-adjusted growth, supported by a robust adjusted EBITDA margin of 28%. While operational performance remained steady, the group recorded a net loss of SEK 210 million for the year, primarily driven by non-cash financial adjustments related to the revaluation of earnout liabilities and an exceptionally high effective tax rate of 214.7%. The strategic centerpiece of this period is the February 2025 acquisition of Plarium Global Ltd for USD 655 million. This move is expected to double MTG’s revenue and EBITDA, adding the high-performing *RAID: Shadow Legends* IP to a portfolio that includes established franchises from PlaySimple, InnoGames, and Ninja Kiwi. Beyond scaling the "Gaming Village" model, the acquisition integrates Plarium’s proprietary "Flow Platform" tools, enhancing the group’s marketing, direct-to-consumer capabilities, and cross-promotion efficiency across its mid-core and casual segments. Geographically and operationally, MTG maintains a global footprint with major hubs in India, Germany, and the UK. The group’s financial position remains liquid, ending 2024 with SEK 3.5 billion in cash and a negative net debt, despite active share buyback programs totaling SEK 500 million. Sustainability and governance also saw increased focus, with the establishment of 2032 carbon reduction targets and a commitment to increasing female and non-binary representation in the workforce from 28% to 40%. Despite risks associated with platform dependency and the concentration of revenue in key titles like *Forge of Empires*, the group’s aggressive M&A strategy and centralized synergetic layer position it for significant scaling in the global mobile gaming industry.

“The parent company's liabilities to group companies amounted to SEK - (-2) million at the end of the year.”p.101

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The 2025 sports‑technology market experienced an unprecedented surge of private capital, with roughly 500 announced transactions totaling $14.3 billion. Early‑stage investments alone contributed about $8.8 billion, underscoring a robust pipeline of emerging innovators and a strong appetite among venture investors for nascent solutions across performance analytics, fan engagement, and digital infrastructure. This influx of funding reflects a broader confidence in the sector’s growth trajectory and its expanding role within the global sports ecosystem. Concurrently, the year was marked by a wave of mega‑valuations and record‑size mergers and acquisitions, most prominently the $10 billion acquisition of the Los Angeles Lakers and the $6.1 billion purchase of the Boston Celtics. These franchise deals, together with a $76 billion NBA media‑rights package, illustrate the escalating financial stakes attached to elite sports properties and the premium placed on content distribution platforms. Valuation metrics for traditional sports‑tech firms stabilized around an average EV/EBITDA multiple of 4.2× and a revenue multiple near 13×, indicating a mature market where profitability and top‑line growth are increasingly scrutinized by investors. Overall, the analysis captures a market that is both capital‑intensive and consolidation‑driven, with the United States serving as the focal point for high‑profile transactions while broader global trends echo similar patterns of investment and valuation. The data suggest that continued inflows of private capital, coupled with strategic M&A activity, will shape the competitive landscape and set valuation benchmarks for the next phase of sports‑technology development.

• •The sports tech market reached a record $200 billion in total deal value across 1,026 announced transactions in 2025.
• •M&A activity was dominated by two mega-deals: Netflix's $82.7 billion proposed acquisition of Warner Bros Discovery and Saudi PIF/Silver Lake's $55 billion acquisition of EA.
• •Private placements hit a record $14.3 billion in 2025, a 1.5x growth in value since 2023, despite the total number of financing deals declining to 500.
• •New capital for sports tech-focused funds exceeded $12 billion in 2025, highlighted by Apollo Global Management launching a $5 billion strategic sports investment vehicle.
• •The Fantasy, Esports & Betting segment led capital raised in private placements, featuring landmark rounds for Polymarket ($2.2 billion) and Kalshi ($1.5 billion).

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In the first half of 2025 the global sports‑technology sector recorded approximately $52 billion in announced or closed transactions, underscoring a rapid acceleration of both merger‑and‑acquisition activity and capital raising. Roughly $32 billion stemmed from 233 M&A deals, while a record‑high $6.6 billion was secured through 239 private‑placement rounds, more than 80 % of which involved early‑stage companies. The capital influx was driven by a mix of strategic consolidations—most notably TSG Consumer’s $1.5 billion acquisition of EOS Fitness and RTL’s $613 million purchase of Sky Deutschland—alongside a wave of targeted investments such as Valeas’s $110 million majority stake in Ticketmanager, Genstar’s acquisition of Playmetrics for integration with Stack Sports, and IMG’s takeover of SportsRecruits. Deal multiples varied across subsectors, reflecting divergent growth trajectories within wearables, fan‑engagement platforms, and performance‑analytics solutions. Geographically, the activity spanned North America, Europe and emerging markets, with transaction processing centralized through Drake Star Securities LLC in the United States and its UK affiliate, Drake Star UK Limited, both operating under FINRA regulation and SIPC membership. This infrastructure ensures compliance and investor protection for institutional participants. The concentration of early‑stage financing and the prevalence of large‑scale consolidations together signal a market transitioning from fragmented innovation toward integrated platforms capable of delivering end‑to‑end sports experiences. The data suggest that investors and strategic acquirers view the sector as a high‑growth arena, positioning it for continued expansion and deeper consolidation throughout the remainder of 2025.

• •The global sports tech market reached a total deal value of $51.9 billion in H1 2025 across 503 announced or closed transactions.
• •M&A activity dominated the sector with $32.2 billion in disclosed deal value across 233 deals, led by TSG Consumer’s $1.5 billion acquisition of EōS Fitness.
• •Private placements hit a record $6.6 billion across 239 deals, highlighted by Infinite Reality raising $3 billion and DAZN securing $1.8 billion.
• •Investor appetite for new sports-focused capital remains high with over $3.5 billion in new funds announced, including the $1.2 billion Checketts Sports fund.
• •Disney acquired a 70% stake in FuboTV for $220 million in cash and a $145 million loan, creating a provider with 6.2 million subscribers.

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The analysis focuses on the accelerating consolidation of the worldwide gaming ecosystem, emphasizing the unprecedented scale of mergers and acquisitions (M&A) and private‑placement financing observed in the final quarter of 2025 and projecting a further surge into 2026. In Q4 2025, a record‑high 43 announced transactions totaled $83 billion, highlighted by Netflix’s $82.7 billion purchase of Warner Bros.’ avatar‑technology portfolio and Kakao Games’ $78 million strategic stake aimed at expanding its PC and console footprint. Private‑placement activity complemented the M&A wave, with 137 deals raising $1.5 billion, underscoring heightened investor appetite for growth‑stage gaming ventures. The data reveal a clear shift toward acquisition of immersive‑technology assets, particularly avatar and metaverse‑related capabilities, as major platform operators seek to deepen engagement across streaming and interactive media. Geographic distribution remains truly global, with North American and Asian firms leading both deal origination and capital provision, while sovereign wealth entities such as the Public Investment Fund (PIF) emerge as influential buyers. The breadth of activity spans traditional console and PC publishers, mobile‑first developers, and emerging gaming‑tech startups, indicating a convergence of content, distribution, and underlying technology. Looking ahead to 2026, the outlook anticipates a sharp acceleration in gaming‑tech M&A, driven by a roster of “buyers to watch” that includes PIF‑backed Scopely, Netflix, Paramount, Tencent, Krafton and NCSoft. The forecast suggests that strategic imperatives—namely, securing avatar‑tech, expanding cross‑platform ecosystems, and leveraging data‑driven monetisation—will fuel continued dealmaking at volumes exceeding the historic Q4 2025 peak. Overall, the findings point to an industry in the midst of rapid structural realignment, with capital flowing toward assets that enable deeper, more immersive player experiences and broader monetisation opportunities.

• •The gaming M&A market reached a landmark $161 billion in total disclosed value across 759 announced deals in 2025.
• •Netflix announced a major $82.7 billion acquisition of Warner Bros. and its gaming division, which triggered a hostile $108.4 billion bid for Warner Bros. Discovery by Paramount–Skydance.
• •A consortium led by PIF completed a $55 billion leveraged buyout of Electronic Arts (EA) in September 2025.
• •Private company financings totaled $6.2 billion across 509 deals, led by Luma AI’s $900 million Series C and a $2.5 billion investment in Dream Games by CVC and Blackstone.
• •The Drake Star Gaming Index rose 12% in 2025, significantly bolstered by Unity's 92% stock price increase and NEXON's 63% growth.

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This research, conducted by 80 Level in January 2024, examines the global compensation landscape and financial well-being of professionals within the video game development industry. Based on a survey of over 1,000 respondents from the 80 Level Research panel and reader base, the study analyzes how geography, years of experience, and specific job roles influence annual income and purchasing power. The findings reveal a highly stratified industry where nearly 40% of developers earn less than $40,000 annually, while only 11% exceed the $150,000 mark. Geographic location serves as a primary driver of these disparities; for instance, 36% of U.S.-based professionals earn over $150,000, whereas 54% of surveyed developers in India earn under $9,999. In Europe, the majority of professionals in the UK, Germany, and Sweden fall within the $30,000 to $79,999 range. The data also highlights a significant "cost of living" gap, noting that while 16.6% of the workforce can afford all discretionary purchases, 24.4% earn enough for a car but remain unable to afford a residence. Experience levels further dictate earning potential, with 74% of interns earning under $9,999, while 24% of Directors and Leads exceed $150,000. The analysis of specific roles shows that Creative Directors and Software Developers generally occupy higher salary segments compared to Artists and Game Designers. Notably, the study identifies a segment of "struggling" C-level executives (19%), likely representing founders of small indie studios who face financial instability despite their titles. The research concludes that while the industry offers high-earning potential at senior levels in Western hubs, a substantial portion of the global workforce operates under significant financial constraints.

“Based on the research conducted by HAYS, almost half (44%) of employers from China expect an increase in their salaries above 3% and less or equal to 6% in 2023, whereas 47% of employees expect an increase of greater than 10%.”p.8

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