Report

Gaming Deals Activity Report Q1‑Q3 ’21

1 September 202121 pages4,329 words

Summary

The global video games industry experienced a period of significant financial expansion during the first three quarters of 2021, characterized by a 2.5x year-over-year growth in cumulative deal value. Total closed transactions reached $57.7 billion across 667 deals, nearly tripling the $22.7 billion recorded during the same period in 2020. This surge was driven by a robust performance in mergers and acquisitions, which accounted for 48% of total value, followed by public offerings at 37% and private investments at 15%. The gaming segment remained the primary driver of activity, representing 75% of total deal value. Mobile gaming emerged as a particularly dominant force, contributing 84% of M&A value in the third quarter alone, highlighted by Electronic Arts’ $1.4 billion acquisition of Playdemic. While public offerings faced a cooling period in the third quarter due to market turbulence and share price declines among industry leaders, the period still saw massive exits, including the $3.75 billion IPO of Krafton. Private placements also hit record levels, with late-stage funding rounds for companies like Sorare and Discord signaling sustained investor confidence. A notable shift in the industry landscape is the rapid ascent of blockchain gaming. This sub-sector saw a 34x year-over-year increase in deal value, reaching $1.56 billion. Investment is currently concentrated in companies building platform layers and infrastructure for non-fungible tokens and play-to-earn models. Geographically, China remained a focal point for strategic activity, largely led by Tencent, which closed 69 deals during the nine-month period. The data is compiled through the tracking of closed transactions across the gaming, platform, tech, and esports segments, excluding pure gambling and betting. Methodology involves a combination of public media monitoring, business partner insights, and S&P Capital IQ data. The findings suggest that despite a slight quarterly deceleration in public markets, the broader gaming ecosystem continues to attract record-breaking capital from both venture funds and strategic corporate investors.

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Gaming Deals Activity Report Q1-Q3’2021

The global video game industry experienced unprecedented growth in deal activity during the first three quarters of 2021, reaching a total closed deal value of $57.7 billion across 667 transactions. This represents a 2.5x increase in cumulative value and a 46% increase in the number of deals compared to the same period in 2020. The market was primarily driven by the gaming segment, which accounted for 75% of total value, followed by platform and technology, esports, and other related sectors. Mergers and acquisitions served as the primary engine for this expansion, contributing $27.9 billion or 48% of the total closed deal value. Notable transactions included Microsoft’s $7.5 billion acquisition of ZeniMax Media and ByteDance’s $4 billion acquisition of Moonton. Public offerings contributed $21.2 billion, highlighted by the $3.75 billion IPO of Krafton. However, the report identifies a cooling trend in public markets during the third quarter, characterized by a decline in the number of deals and share price volatility for industry leaders. Private investments reached a record $8.6 billion, with late-stage venture capital accounting for 78% of that value, led by significant rounds for companies like Sorare and Discord. A major finding is the explosive rise of blockchain gaming, which saw a 34x year-over-year growth in deal value, totaling $1.56 billion. Investors showed a strong preference for infrastructure and platform layers that enable blockchain integration, rather than individual game titles. Geographically, the report highlights the continued dominance of strategic investors like Tencent, which closed 69 deals during the period, focusing heavily on the mobile segment and the Chinese market. The analysis is based on data from InvestGame and S&P Capital IQ, tracking closed transactions across mobile, PC, console, and VR/AR segments while excluding pure gambling and betting. The methodology utilizes a weighted average ranking system to identify the most active venture capital and strategic investors globally.

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The first quarter of 2021 marked a record-breaking period for the global gaming industry, characterized by an unprecedented surge in financial activity across private investments, public offerings, and mergers and acquisitions. Total closed transactions reached $25 billion across 249 deals, representing a twofold increase compared to the first half of 2020. When including announced but not yet closed transactions, the total deal value for the quarter climbed to $39 billion. This momentum suggests that 2021 is positioned to surpass previous annual records for industry investment. Mergers and acquisitions served as the primary engine of growth, contributing 57% of total deal value at $14.3 billion. This segment saw a nearly sixfold increase in value year-over-year, driven by "mega-deals" such as Microsoft’s $7.5 billion acquisition of ZeniMax Media, ByteDance’s purchase of Moonton, and EA’s acquisition of Codemasters. Public offerings also reached new heights, totaling $8.3 billion across 36 deals. This activity was bolstered by high public market valuations and the rising popularity of Initial Public Offerings (IPOs) and Special Purpose Acquisition Companies (SPACs), with notable listings from Playtika, Roblox, and Huuuge Games. Private investments hit a segment record of $2.6 billion, with late-stage transactions accounting for 73% of that value. Roblox’s $520 million pre-IPO round was the most significant private placement. Geographically and strategically, Tencent remained the most prolific investor, closing 35 deals with a heavy focus on PC and console developers. Other top strategic players included Electronic Arts, Embracer Group, and Epic Games. The data covers global transactions within the gaming, platform, technology, and esports segments during the first three months of 2021. Methodology involves tracking closed transactions using a combination of public media, business partnerships, and S&P Capital IQ data, specifically excluding pure gambling and betting entities to focus on the core video game market.

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The first half of 2021 marked a period of unprecedented financial activity in the global video game industry, characterized by a fourfold increase in deal value compared to the same period in 2020. Total transaction value for closed deals reached $44.2 billion across 471 transactions, while the inclusion of announced deals brought the cumulative value to $50.2 billion. This surge was driven primarily by massive mergers and acquisitions and record-breaking public offerings, signaling a robust period of consolidation and capital influx across gaming, platform technology, and esports segments. Mergers and acquisitions emerged as the primary growth engine, totaling $22.4 billion in value. This figure surpassed the entirety of 2020, fueled by "mega-deals" such as Microsoft’s $7.5 billion acquisition of ZeniMax and ByteDance’s $4 billion acquisition of Moonton. Public offerings also reached an all-time high of $17.1 billion, supported by high-profile IPOs and direct listings from companies like Roblox, AppLovin, and Playtika. Private investments contributed $4.6 billion, with late-stage venture capital accounting for 65% of that total. Notable trends included a strategic shift toward PC and console targets in the M&A space and the rapid emergence of blockchain-powered gaming, which saw 24 deals exceeding $476 million. Geographically and strategically, Tencent maintained its dominant position by closing 53 deals, focusing heavily on PC and console studios. Other major players like Electronic Arts and Embracer Group aggressively expanded their portfolios through multi-billion dollar acquisitions. While the first quarter of 2021 saw the highest concentration of activity, the second quarter experienced a slight cooling in public markets as several newly listed companies faced share price declines. Data for these findings was compiled through a methodology tracking closed transactions via public media, business partnerships, and S&P Capital IQ, excluding pure gambling and betting entities.

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Gaming Deals Activity Report Q1‑Q3'22

The analysis tracks deal activity across the global gaming ecosystem during the first three quarters of 2022, quantifying both merger‑and‑acquisition (M&A) and venture‑capital trends to assess how regulatory shifts and macro‑economic conditions reshaped investment patterns. A total of 626 transactions closed, generating $51.4 billion in value—a 31 percent rise over the same period in 2021—yet the quarterly count of deals contracted sharply, falling from 80 in Q1 to 55 by Q3. This contraction is attributed to heightened regulatory scrutiny, the fallout from the IDFA privacy changes, and a broader slowdown in economic confidence. M&A activity remained the dominant driver, accounting for roughly 73 percent of total deal value, with gaming‑specific mergers representing 72 percent of that share, underscoring the sector’s preference for consolidation over organic growth. In contrast, venture investment slipped 25 percent year‑over‑year, reflecting investor caution amid the same external pressures. Within the venture segment, crypto‑gaming emerged as a distinct outlier: Series A rounds averaged $40 million, markedly above the $25 million average across all gaming deals, highlighted by sizable raises such as Jot Art’s $55 million, Iskra’s $34 million, and Planetarium Labs’ $32 million. Overall, the period illustrates a market in transition, where large‑scale M&A continues to capture the bulk of capital while emerging niches like crypto‑gaming attract disproportionately high funding despite a general retreat in venture activity. The findings suggest that future deal flow will likely hinge on regulatory clarity and the ability of niche segments to sustain investor enthusiasm in a constrained macro environment.

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Gaming Deals Activity Report Q1‑Q3 ’21

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