Drake Star Partners

Global Gaming Report Q3 2025

The third quarter of 2025 underscores the continued premium placed on hardware and platform players within the global gaming ecosystem, as investors assign a wide spectrum of valuation multiples that reflect divergent growth narratives and market positioning. Enterprise‑valued firms such as Dell and HP trade near a 1‑times EV/EBITDA ratio, indicating modest expectations for earnings expansion, while high‑growth entities like Nvidia and AppLovin command multiples exceeding 25‑times, with the latter reaching 42.8‑times, highlighting the market’s appetite for cutting‑edge processing power and mobile advertising integration. Across the board, most companies in the segment posted double‑digit year‑over‑year revenue increases, confirming robust demand for both traditional PC hardware and emerging cloud‑based gaming services. Equity performance further illustrates the split between established hardware manufacturers and platform‑centric developers. Roblox delivered the strongest year‑to‑date appreciation at 136.9%, driven by expanding user engagement and monetization initiatives, while Unity recorded a 77‑percent gain, reflecting its pivotal role in cross‑platform development tools and the growing adoption of real‑time 3D content. These returns contrast sharply with the more muted trajectories of hardware‑only firms, suggesting that investors are rewarding firms that blend hardware capabilities with scalable software ecosystems. Overall, the data portray a gaming market in which valuation is increasingly tied to the ability to integrate hardware performance with platform services, and where growth‑oriented companies enjoy markedly higher multiples and stock appreciation. The findings span a global landscape, covering major North American, European, and Asian players, and focus on the quarter ending September 2025, offering a snapshot of valuation dynamics and performance trends that are likely to shape strategic investment decisions throughout the remainder of the year.

Drake Star PartnersSept 2025

Drake Star Global Gaming Report Q2 2025

The global gaming industry experienced a significant financial resurgence during the first half of 2025, characterized by a 28 percent increase in the Drake Star Gaming Index. This performance notably outpaced the S&P 500, signaling renewed investor confidence and a stabilization of market valuations. The landscape remains defined by consistent deal flow, with 46 announced mergers and acquisitions in the second quarter alone and 110 private financing placements totaling $3 billion. A landmark $2.5 billion investment in Dream Games by CVC and Blackstone underscores the continued appetite for high-value, strategic minority stakes within the sector. Capital allocation is currently broad, spanning mobile, PC, console, and emerging platform and tool segments. Artificial intelligence and specialized technology infrastructure have emerged as primary drivers for future investment, as companies increasingly utilize improved public valuations to pursue inorganic growth strategies. Major institutional players, including Tencent and Savvy Games Group, continue to exert significant influence over the market, maintaining their roles as key architects of industry consolidation and expansion. Comprehensive benchmarking across Asia, the United States, and Europe reveals a sophisticated ecosystem where valuation multiples, such as EV/Revenue and EV/EBITDA, serve as critical indicators for publishers, hardware manufacturers, and advertising platforms. As the industry moves into the latter half of the year, expectations for increased initial public offering activity and sustained M&A momentum remain high. This financial data provides a foundational reference for understanding the current competitive environment, reflecting a sector that is successfully leveraging technological innovation and strategic capital to navigate a complex global economic landscape.

Drake Star PartnersJun 2025

Global Gaming Report: Q1 2025

The global gaming industry experienced a significant resurgence in financial activity during the first quarter of 2025, marked by a substantial rebound in mergers, acquisitions, and private placements. Total deal value for the quarter reached $4.4 billion across 48 announced transactions, representing the highest quarterly valuation in nearly two years. This momentum was primarily driven by large-scale strategic consolidations, such as the $3.5 billion acquisition of Niantic’s games division by Scopely and AppLovin’s $900 million studio spin-off. Simultaneously, private investment surged to $3.5 billion across 149 deals, anchored by a landmark $3 billion investment into Infinite Reality at a $12.25 billion valuation. Investment trends during this period shifted toward AI-driven entertainment and mobile user acquisition technologies. Strategic players like Savvy Games Group and Tencent maintained leadership roles in capital deployment, while venture capital firms such as BITKRAFT and Andreessen Horowitz remained the most prolific investors by volume. Geographically, the Asian developer market demonstrated steady stability with a median revenue growth of 9%, while the hardware and tools sector outperformed broader segments with a 20% average revenue increase. This growth was heavily influenced by the dominance of NVIDIA, which saw a 114% year-over-year revenue surge, positioning it as a cornerstone of the industry’s infrastructure with a $2.6 trillion market capitalization. Despite the overall recovery reflected in the 16.37% return of the Drake Star Gaming Index, the market exhibited extreme volatility among individual public companies. While Sea Limited experienced a dramatic 223% increase, established entities like Unity and Ubisoft faced significant downturns, with valuations falling by over 50%. This divergence highlights a period of intense transition where hardware providers and AI-integrated platforms are capturing the majority of market gains, while traditional software developers and engine providers navigate a more challenging and fragmented economic landscape.

Drake Star PartnersApr 2025

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Managed Service Provider Market Update: Q1 2025

The report presents a comprehensive analysis of the Managed Service Provider (MSP) market in the first quarter of 2025, emphasizing the surge in merger‑and‑acquisition activity and the transformative role of artificial intelligence. It argues that the MSP sector is entering a phase of accelerated consolidation driven by strategic buyers seeking to broaden capabilities, while AI adoption is reshaping operational models and delivering measurable performance gains. In Q1 2025, 106 announced M&A transactions were recorded across the United States and Europe, with disclosed deal values exceeding $1 billion—up from $927 million in the same period a year earlier. IT consulting services accounted for roughly 90 % of all activity, and the top ten strategic players each acquired at least four MSPs, whereas financial investors typically made single‑company investments. The global MSP market, valued at $305 billion in 2024, is projected to reach $571 billion by 2033, reflecting heightened demand for cost‑efficient, complex IT solutions. Notable deals include Sophos’s $859 million acquisition of Secureworks, NOS’s €152 million purchase of claranet, and several mid‑size transactions ranging from $6 million to $30 million. AI‑enabled automation is identified as a key growth engine, with studies cited indicating 30‑50 % reductions in operational costs, up to an 11 % uplift in revenue, a 20 % increase in overall earnings, and a 50 % cut in ticket workloads. Advanced AI tools such as smart ticket routing, real‑time sentiment analysis, and self‑healing infrastructure are credited with accelerating resolution times by up to eightfold, though talent shortages and integration complexity remain challenges. The analysis draws on announced deal data, disclosed financial terms, and third‑party research from sources such as Pitchbook, Zofiq, PIA.AI, and ITPro. It combines quantitative transaction metrics with qualitative insights on technology adoption, offering a forward‑looking perspective for investors, strategic buyers, and industry stakeholders.

Drake Star PartnersMar 2025

Global Gaming Report 2025

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.

Drake Star PartnersJan 2025

Global Sports Tech Market Report H1 2025

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.

Drake Star PartnersJan 2025

Sports Tech Market 2025

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.

Drake Star PartnersJan 2025

Global Gaming Report: Q3 2024

The global gaming industry experienced a significant resurgence in deal activity during the third quarter of 2024, characterized by a 70% year-over-year increase in merger and acquisition volume. With 56 announced deals totaling $2.5 billion in disclosed value, the market demonstrated a clear shift toward consolidation, headlined by Playtika’s $1.95 billion acquisition of SuperPlay. Private financing also showed resilience, reaching $1.18 billion across 181 deals. While growth-stage funding remains difficult to secure, early-stage investments flourished, particularly within the blockchain and platform tools sectors, which accounted for 32% and 23% of deal flow respectively. Investment leadership remains concentrated among a few key venture capital and strategic players. Andreessen Horowitz and BITKRAFT led the Series A and B stages with 15 deals each, while Animoca Brands dominated strategic investing with 38 transactions. This activity, coupled with Shift Up’s successful $320 million IPO, suggests a gradual recovery in public markets and sets an optimistic trajectory for 2025. Despite this momentum, valuation disparities persist across geographic and platform segments. PC and console-focused companies in North America and Europe command higher revenue multiples than their mobile counterparts, even when mobile firms report superior profit margins. The broader industry landscape is heavily influenced by the hardware and tools segment, where NVIDIA’s massive enterprise value and triple-digit revenue growth skew overall market data. In Asia, Japanese stalwarts like Sony and Nintendo continue to lead by market capitalization. These findings, compiled by Drake Star through June 2024, reflect a stabilizing ecosystem where strategic acquisitions and early-stage innovation are offsetting the lingering challenges of the growth-stage capital markets. The data indicates that while the industry is navigating complex valuation environments, the appetite for high-quality intellectual property and infrastructure remains robust.

Drake Star PartnersSept 2024

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Global Gaming Report Q2 2024

The second quarter of 2024 marked a pronounced resurgence in global gaming activity, driven by a surge in merger‑and‑acquisition activity and a revitalized indie and AA publishing landscape. Fifty‑two deals were announced, collectively valued at $3.5 billion, representing the strongest quarterly M&A performance since the third quarter of 2023. The most consequential transaction was EQT’s $2.8 billion acquisition of Keywords, underscoring the appetite of private‑equity and strategic investors such as Infinite Reality and Voodoo for high‑growth assets. Parallel to the consolidation trend, the indie and AA segment displayed robust expansion, with smaller publishers achieving double‑digit year‑to‑date revenue growth. Devolver Digital, Team 17 and tinyBuild each posted notable gains, while hardware and platform partners Logitech and KRAFTON recorded increases of 54.9 % and 53.7 % respectively. This rebound reflects heightened consumer demand for diversified experiences and the effectiveness of lean development models in capturing market share. Conversely, legacy publishers continued to confront headwinds, including declining engagement on older franchises and the pressure to adapt to evolving monetisation models. Their performance lagged behind the rapid growth observed among newer, agile studios, highlighting a sectoral shift toward innovative, lower‑cost production pipelines. Overall, the quarter illustrates a dual dynamic of intensified capital inflows and a competitive rebalancing that favours nimble developers. The data suggest that sustained investment and strategic acquisitions will likely shape the industry’s trajectory, while legacy entities must accelerate transformation to remain viable in an increasingly fragmented and fast‑moving market.

Drake Star PartnersJun 2024

DevOps Report

The report presents a comprehensive analysis of the global DevOps ecosystem, emphasizing its rapid evolution, investment dynamics, and the strategic role of emerging technologies such as artificial intelligence, low‑code platforms, and serverless computing. By integrating market performance data, transaction activity, and funding trends, it argues that DevOps has become a primary growth engine for technology firms, outpacing traditional operations and broader equity benchmarks. Quantitative findings show that Dev‑focused companies have delivered a 23 percent total return over the past four quarters, surpassing the S&P 500, while Ops‑centric peers lagged with an 11 percent gain. Revenue growth multiples for leading Dev firms range from 12‑to‑20‑times, with Atlassian, GitLab, HashiCorp and DataDog commanding premium valuations. The sector’s M&A volume rebounded to $27.6 billion in the first half of 2024, highlighted by marquee deals such as Cisco’s $31 billion acquisition of Splunk and IBM’s $7.7 billion purchase of HashiCorp. Private‑market activity remains robust, with the ten best‑funded DevOps startups raising a cumulative $4.3 billion, and low‑code solutions projected to account for more than 65 percent of new applications. Geographically, the analysis spans North America, Europe, the Middle East and Asia, covering transactions from 2013 onward and focusing on the 2023‑2024 period. Data sources include Capital IQ, Pitchbook, Gartner, DS Research and other industry databases, providing a multi‑source foundation for the performance and valuation metrics presented. The findings underscore the accelerating convergence of development and operations, driven by AI‑enhanced automation, open‑source integration, and the shift toward serverless architectures, positioning DevOps as a central pillar of modern technology investment strategies.

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Drake Star PartnersMar 2024

Global Gaming Report Q1 2024

The first quarter of 2024 marked a pronounced revival in the gaming industry’s investment climate, underscoring a dual narrative of heightened deal activity and divergent financial performance across sub‑segments. Forty‑seven announced mergers and acquisitions generated $2.4 billion in disclosed value, while private‑equity financing matched that amount across 188 transactions, with early‑stage rounds remaining predominant. Notably, blockchain‑focused early‑stage deals accounted for 40 % of total deal volume, reflecting growing confidence in decentralized gaming models. Flagship transactions such as CVC and Haveli’s $1.1 billion acquisition of Jagex and Take‑Two’s $460 million purchase highlighted the scale of capital flowing into established IP owners. A comparative analysis of valuation multiples and revenue trajectories revealed a stark split between hardware‑platform and ad‑tech firms versus traditional game publishers. Companies like NVIDIA (EV/EBITDA≈36×, revenue $2.2 bn) and Applovin (EV/EBITDA≈7.8×, revenue $22.8 bn) posted double‑digit revenue growth and commanded premium multiples, whereas publishers such as Roblox, Skillz, and Atari experienced revenue declines, losses, and modest valuations. Exceptional upside emerged for firms like Wemade (+140 %) and Konami (+79 %), while Embracer suffered a steep 54 % contraction. Overall, the data suggest that capital is increasingly gravitating toward technology‑enabled and blockchain‑centric ventures, while legacy publishing entities confront earnings pressure and lower market confidence. The quarter’s dynamics point to a reshaping of the industry’s investment landscape, with future growth likely tied to the ability of traditional publishers to adapt to evolving platform and monetisation models.