Highlights: a relatively slow year for deal-making activity 2020 2021 2022 2023 Private Investments 5.9B 12.1B 10.7B 2.7B 362 Deals 567 Deals 551 Deals 403 Deals M&As* 12.8B 38.2B 40.8B 78.2B 221 Deals 322 Deals 231 Deals 121 Deals Public Offerings (incl. MSFT-ATVI $68.7B deal) 15.7B 24.5B 3.6B 4.2B Note: (*) closed transactions only

2020–2023 Recap: select largest transactions closed to date M&As Target Key Investor Public Takeover ACTIVISION.BIZARD Microsoft zynga T2 S ironSource unity Private Investments Public Offerings Target Key Investor Target VC IPOs & SPACS 68 700m EPIC2 rounds BAMLLIE GIFFORD KKR 2530m KRAFTON $3750m 12700m FORTE THE SEA KORA 725m ironSource $2300m CAPITAL 4 400m GODA SMASHCAPITAL INSIGHTT GIC 690m APPLOVIN $2000m Private M&As VC/PE PIPEs & Fixed Income ZeniMax Microsoft 7 500m EPIC2 rounds SONY 8 2250m NetEase $2700m KIIRKBI Games SCOPELY SAVVY 4900m sorare SoftBank 680m T2 $2 700m MOONTON NUVERSE 4000m FROM SOFTWARE Tencent SONY 246m bilibili $2600m

Private Investments: turbulence persists — The highly inflated activity observed emerged Early-stage gaming funds (30+ new — However, this year, the industry may momentum, presenting investors with better in 2020–22 was corrected, reaching its lowest funds appeared since 2020). witness a rise in Late-stage down rounds entry terms. point by the end of 2023. and shutdowns as numerous studios struggle — Looking at 2024, we see a rebound to show solid performance in conduction with — Investors are seeking strategies for inherent — Despite the lower capital amount raised in fundraising activity, with January alone lofty valuations of previous rounds raised in risks tied to content’s “hit-driven” nature, which in 2023 (2.7B), driven by weaker Late-stage contributing 1.7B value (incl. Disney’s $1.5B 2020–22. led to a noticeable uptick in the gaming activity, the deal volume remains solid, above investment in Epic Games and Build a Rocket ecosystem area in recent years — a trend likely the pre-COVID level supported by an infusion Boy’s $110m round), suggesting that the — At the same time, Seed funding for newly to persist in the coming years. of new fresh capital brought in by newly worst may be behind us. opened studios is expected to maintain Corporate & VC Investment Activity 2020–2023 Full Year 101 99 146 132 129 160 182 137 116 116 147 97 362 567 551 403 86 76 o O O . o 87 72 OOO

funding for newly to persist in the coming years. of new fresh capital brought in by newly worst may be behind us. opened studios is expected to maintain Corporate & VC Investment Activity 2020–2023 Full Year 101 99 146 132 129 160 182 137 116 116 147 97 362 567 551 403 86 76 o O O . o 87 72 OOO 0.6 0.8 3.3 1.2 2.4 2.4 4.0 3.3 3.5 4.2 2.0 1.1 1.0 0.5 0.8 0.4 5.9 12.1 10.7 2.7 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 2020 2021 2022 2023

M&As: pulling out of “nose-dive” maneuver — After reaching a zenith in 2022, M&A sector centers on continuing the current — Recent positive trends in public comps — However, persistent fears of recession, activity in 2023 settled at the modest value market slump for another year. earnings results, massive dry powder of PEs ongoing platform updates (e.g., Google of ≈$9.5B (excluding the MSFT-ATVI deal earmarked for gaming sector investments, Privacy Sandbox, new App Store guidelines, for $68.7B announced in Jan’22) — Looking into 2024, we expect a potential the convergence of seller-buyer valuation the Unity Runtime Fee), and policy (antitrust, with 2x times lower number of closed deals uptick in deal-making activity (recent expectations, and the IPO exit window loot boxes laws) changes may hurt financial vs. average across the previous three years. example: Jagex acquisition by CVC/Haveli remaining close collectively all point towards investors’ appetite. for rumored $1.1Bn), especially a more vibrant M&A environment. — The prevailing uncertainty in the M&A if macroeconomic conditions stabilize. Closed M&A Activity 2020–2023 Full Year 50 55 77 83 76 83 80 88 62 221 322 231 0 39 O a 44 O 37 42 31 24 24 121 O o ACTIVISION ACTiVISION BZARD 17.3 B BZARD 68.7 4.5 4.2 14.7 8.1 6.1 9.2 11.4 7.2 4.8 0.7 7.8 68.7 12.8 38.2 40.8 2.4 1.6 0.6 0.4 9.5 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 2020 2021 2022 2023

Public Offerings: first signs of improvement — Throughout 2020–2021, the gaming landscape and restated earnings projections starkly contrasting the $24.5B raised rate cut in mid-2024 signals a potential industry became increasingly attractive presented significant obstacles for in 2021, marking a nearly sixfold decrease. resurgence in public market activity this year. to investors, driven by its substantial growth. companies seeking to go public (IPOs, However, 2023 indicated moderate recovery Public companies successfully raised SPACs) or secure funding (PIPEs, Debt) with growth in value (+16% YoY) and deal — With public listings being on pause PIPEs to fuel aggressive M&A strategies, at attractive terms. count (+87% YoY). for two years, companies increasingly view while numerous businesses pursued public IPO as an essential tool to provide investor listings to capitalize on market momentum. — After a notable downturn in 2022, public — Despite the IPO window remaining closed, liquidity while retaining operational control, offering activities within the sector remained the combination of improving earnings leading to a notable deferred demand that — In 2022, the evolving macroeconomic subdued in 2023, generating just $4.2B, results, halted Fed rate hike, and anticipated could resurge if market conditions improve. Public Offerings Activity 2020–2023 Full Year 20 22 30 37 83 68 11 o o 19 5 7 9 6 4 4 11 9 13 10 23 43 0 O O o O O o O