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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.

market-analysis investment mergers-acquisitions+1

InvestGameJan 2021

Report

Q1‑Q3 2020: Recap of the Investment Activity in the Video Game Market

The first three quarters of 2020 saw the global gaming industry navigate significant volatility caused by the COVID-19 pandemic, ultimately demonstrating strong resilience and a rapid recovery in deal activity. While private investments dropped sharply in May 2020, the market rebounded by July, closing 100 transactions worth approximately $2.78 billion. This investment activity was heavily concentrated at the later stages, with American companies like Epic Games, Roblox, and Scopely accounting for over 90% of total capital value. Conversely, early-stage venture capital remained more geographically diverse, with U.S. startups representing only 30% of those funds. Mergers and acquisitions remained robust throughout the period, largely unaffected by macroeconomic instability. The mobile segment led in volume with 41 deals totaling $4.6 billion, while the PC and console segment reached $10.5 billion in value, driven primarily by Microsoft’s $7.5 billion acquisition of ZeniMax. Strategic buyers such as Tencent, Embracer Group, and Stillfront Group continued to consolidate the market. Public offerings followed a similar recovery arc; after a near-total halt in the first half of the year, the market reopened in June with significant IPOs from Asian companies and capital raises by Western firms to fund future acquisitions. The landscape of financial backers was led by specialized venture funds like Makers Fund, Play Ventures, and BITKRAFT Ventures in terms of deal volume, while KKR and Andreessen Horowitz dominated in total value through large-scale, later-stage investments. Strategic activity was characterized by "mastodons" like Microsoft and Zynga, alongside aggressive consolidation efforts by European holding companies. Analysts expect continued momentum into 2021, driven by the need for content on subscription platforms and the scaling of major mobile publishers ahead of potential public listings.

investment mergers-acquisitions market-analysis+1

InvestGameSept 2020

Report

2020–2022: The Most Exciting Time in the Gaming Industry

This analysis examines global investment and merger and acquisition (M&A) activity within the video game industry from 2020 through 2022. The primary thesis posits that the industry has passed a historic peak of deal-making and is now entering a "Great Reset" characterized by market cooling, lower valuations, and a shift in investor priorities. While the era of massive public offerings and late-stage venture capital (VC) surges has slowed due to macroeconomic headwinds like inflation and rising interest rates, the industry remains fundamentally strong with significant "dry powder" available for early-stage startups and strategic consolidations. The data reveals a volatile three-year cycle. M&A activity reached a zenith in 2022 with $37.7 billion in closed deals—a 199% increase in value from 2021—driven by massive consolidations such as Take-Two’s acquisition of Zynga. Conversely, public offerings plummeted by 82% in 2022 as the IPO and SPAC windows effectively closed. Private investments also saw a 16% decline in value in 2022 after doubling the previous year. Despite these drops, early-stage VC remained resilient, with over $6.2 billion raised by gaming-focused funds ready for deployment. Geographically and segmentally, the scope is global, with specific attention paid to the decline of mobile gaming hype post-IDFA and the rising interest in PC, console, and AI-driven startups. The report highlights a stark cooling in Web3 gaming, where investor "FOMO" has been replaced by a focus on fundamental gameplay and infrastructure. Gender diversity remains a challenge in the sector; 89% of funded or acquired companies were led by men in 2022, a negligible change from 90% in 2021. Methodologically, the findings are based on tracked closed transactions across video game publishers, developers, and hardware providers. Data was aggregated from public media, S&P Capital IQ, and partner insights, utilizing a weighted ranking system to identify the most active investors. The analysis concludes that while the "peak wave" has passed, the industry is transitioning into a more disciplined phase of the investment cycle.

market-analysis mergers-acquisitions investment+1

InvestGameJan 2020

Report

Global Video Game Deals Report 2020

The 2020 fiscal year marked a historic period of consolidation and capital infusion for the global video game industry, largely catalyzed by the COVID-19 pandemic and the resulting surge in at-home entertainment. Total deal value reached $33.6 billion across 664 transactions, encompassing mergers and acquisitions, private investments, and public offerings. The United States and China emerged as the primary geographical drivers, collectively representing 63% of the total deal value. The market demonstrated significant resilience, recovering from a stagnant first quarter to reach record-breaking activity levels in the second half of the year. M&A activity was a primary pillar of this growth, totaling $12.6 billion across 219 deals. This sector was dominated by public strategic acquirers such as Tencent, Embracer Group, Stillfront, and Zynga, who accounted for 60% of the total M&A value. Private investment also reached new heights, with $5.9 billion raised through venture capital and corporate rounds, specifically targeting multiplatform developers and mobile studios. Public markets followed a similar trajectory; after a quiet start to the year, public offerings surpassed $15.1 billion, supported by high-profile IPOs from companies like Unity Software and Kakao Games, as well as significant fixed-income activity as firms moved to refinance debt at lower interest rates. The analysis segments the industry into gaming, platform technology, and esports. While gaming remained the most active sector, platform and tech saw substantial late-stage investments in companies like Roblox and Epic Games. Looking forward, the industry is expected to see continued consolidation led by Nordic and Chinese firms, increased competition between traditional venture capital and large strategic investors, and a robust pipeline of IPO candidates. This data was compiled by tracking closed transactions across public media and financial databases, excluding pure gambling and betting entities to focus on the core video game ecosystem.

mergers-acquisitions investment market-analysis+1

InvestGameJan 2020

Gaming Deals Activity Report Q1-Q3’2021

Q1‑Q3 2020: Recap of the Investment Activity in the Video Game Market

2020–2022: The Most Exciting Time in the Gaming Industry

Global Video Game Deals Report 2020

InvestGame

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Global Video Game Deals Report

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