Investment reports and market data
Documents
Pitching to Publishers | PocketGamer.biz RoundTable
Securing a publishing partnership in the modern gaming industry requires a strategic balance between creative passion and professional pragmatism.
- Prioritize a playable prototype or vertical slice over conceptual pitches to significantly strengthen your position with potential publishing partners.
- Lead your pitch with an emotional hook that highlights the core 'magic' moments of the game rather than focusing primarily on technical specifications or team history.
- Conduct strategic research to target publishers whose existing portfolios, genre expertise, and regional strengths align specifically with your project.
TWIG 119 : EA Buys Glu, AppLovin Buys Adjust, Embracer Buys Gearbox, and Predictions (Shooter, Mktg)
The gaming industry is currently undergoing a period of intense consolidation and strategic realignment, driven by the need to secure mobile expertise and navigate a shifting landscape defined by privacy changes and evolving monetization models.
- The gaming industry is undergoing rapid consolidation, highlighted by Electronic Arts' $2.1 billion acquisition of Glu Mobile and Embracer Group's $1.3 billion purchase of Gearbox Entertainment.
- The mobile shooter genre is a high-growth market that generated $2.1 billion in 2020, requiring deep-progression systems similar to Warframe or Escape from Tarkov to remain competitive.
- The deprecation of the Identifier for Advertisers (IDFA) is forcing a strategic shift away from traditional user acquisition toward reliance on established intellectual property and diversified marketing channels.
Embracer Group M&A Update: February 3, 2021
The February 2021 Embracer Group update outlines the strategic acquisition of Easybrain Group Limited, The Gearbox Entertainment Company, and Aspyr Media.
- Embracer Group acquired Easybrain Group, The Gearbox Entertainment Company, and Aspyr Media for an aggregate day-one purchase price of approximately SEK 9.3 billion.
- The acquisitions include a performance-based earn-out consideration of up to SEK 12.5 billion, contingent on the entities achieving over SEK 23 billion in accumulated operational EBIT over seven years.
- The expansion increases Embracer’s portfolio to 244 intellectual properties and grows its total workforce to approximately 5,719 developers.
Embracer Group Merger with Easybrain: Investor Presentation
The acquisition of Easybrain by Embracer Group serves to integrate a leading developer of mobile puzzle and logic games into the broader Embracer portfolio.
- Embracer Group acquired Easybrain to integrate its specialized mobile puzzle and logic game portfolio, which includes 15 live titles such as Sudoku.com and Nonogram.com.
- Easybrain has achieved over 750 million cumulative installs since its founding in 2016, supported by a workforce of 230 employees.
- The acquisition aims to leverage Easybrain’s proprietary, machine-learning-based LTV prediction models and data-driven infrastructure to scale Embracer’s mobile gaming capabilities.
Embracer Group Acquires Aspyr Media
The acquisition of Aspyr Media by Embracer Group represents a strategic expansion of the latter’s development and publishing capabilities.
- Embracer Group acquired Aspyr Media for an upfront payment of $100 million in cash and shares, with potential performance-based earn-outs reaching an additional $350 million.
- Aspyr Media will operate as an independent entity under Embracer’s Saber Interactive division, retaining its Austin headquarters and existing leadership.
- Aspyr’s proprietary technology, the Aspyr Studio Libraries, is a primary asset that reportedly reduces game porting times by 75 percent across platforms including macOS, Linux, iOS, Android, and consoles.
Embracer Group and The Gearbox Entertainment Company Merger
The merger between Embracer Group and The Gearbox Entertainment Company represents a strategic acquisition designed to bolster Embracer’s portfolio through the integration of a highly profitable, established developer and publisher.
- Embracer Group acquired The Gearbox Entertainment Company for an upfront consideration of $363 million, with a total potential deal value of $1.378 billion tied to a six-year earnout structure.
- Gearbox joins the Embracer ecosystem as its seventh independent operating group, retaining its existing management team and creative autonomy.
- The acquisition includes Gearbox’s operations in Frisco, Texas, and Quebec City, Canada, encompassing a workforce of over 500 employees.
Playtika IPO | Future for The Leader in Mobile Social Casino
Playtika’s initial public offering, which established an $11 billion valuation, reflects investor confidence in the company’s sophisticated, data-driven approach to the social casino market.
- Playtika achieved an $11 billion valuation by applying a software-as-a-service (SaaS) model to the social casino market, prioritizing operational optimization over new title development.
- The company’s growth is heavily dependent on mergers and acquisitions due to stalled organic growth and a lack of a proven track record for internal game development.
- Recent financial performance shows signs of stagnation, characterized by sequential revenue declines and challenging year-over-year comparisons.
Global Gaming 2020: Sector Report
The global gaming industry experienced a transformative period in 2020, characterized by unprecedented growth in consumer engagement and financial performance.
- The global gaming industry outperformed the S&P 500 by a factor of four in 2020, driven by pandemic-induced surges in mobile, PC, and console engagement.
- Total deal volume in the gaming sector increased by 25 percent in 2020, highlighted by major transactions such as Microsoft’s acquisition of ZeniMax and significant funding rounds for Epic Games.
- The industry leveraged diverse financial vehicles for expansion, including a surge in initial public offerings and the strategic use of special purpose acquisition companies to access public markets.
Gaming Deals Activity 2021: Smashing Previous Records
The global video game industry achieved unprecedented financial expansion in 2021, characterized by a surge in capital deployment that solidified the sector as a primary target for institutional and strategic investors.
- The global video game industry reached a record $80.4 billion in total deal value across 967 transactions in 2021, a 2.5-fold increase over the previous year.
- Mergers and acquisitions accounted for nearly half of the total transaction volume, reflecting a significant consolidation trend within the sector.
- Blockchain-integrated gaming experienced explosive growth, with deal value increasing 68-fold year-over-year.
Gaming Deals Activity Report H1'2021
The report documents a four-fold surge in gaming deal activity during the first half of 2021 compared with the same period in 2020.
- Gaming deal activity surged four-fold in H1 2021, reaching a cumulative value of $50.2 billion across 471 closed and announced transactions.
- Mergers and acquisitions dominated the market with $22.4 billion across 154 deals, already surpassing the $12.6 billion total recorded for the full year of 2020.
- The gaming segment specifically saw M&A value climb 486% year-over-year to $20.4 billion, contributing to a total segment value of $32.7 billion.
Annual Financial and Corporate Social Responsibility Report: 2020/21
Focus Home Interactive’s 2020/21 fiscal year was defined by robust financial growth and a comprehensive structural transformation.
- Focus Home Interactive's revenue increased significantly from €137.8M in 2020 to €166.5M in 2021, with net income totaling €14.7M for the year ended March 31, 2021.
- The company's balance sheet assets grew from €90.9M in March 2020 to €122M in March 2021, and equity increased from €57.7M to €72.4M during the same period.
- Focus Home Interactive bought back 127,753 shares in 2020/21, down from 151,759 shares the previous year, and sold 36,015 shares, with 27,099 used to acquire Deck 13 Interactive.
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.
- The video game industry saw $57.7 billion in closed deal value across 667 transactions in Q1–Q3 2021, representing a 2.5x increase in value and 46% increase in deal volume compared to 2020.
- Mergers and acquisitions were the primary growth driver, contributing $27.9 billion (48% of total value), headlined by Microsoft’s $7.5 billion acquisition of ZeniMax Media and ByteDance’s $4 billion purchase of Moonton.
- Public offerings generated $21.2 billion, led by Krafton’s $3.75 billion IPO, though the market experienced a cooling trend and increased share price volatility during the third quarter.