According to the investment bank Drake Star Partners, gaming deals and sponsorships exceeded $60 billion through the first six months of this year. The organization previously reported 527 different deals generated $49 billion in the first five months of 2021.
Michael Metzger is a partner at Drake Star Partners. He said that over 635 gaming deals have been disclosed in the first half of 2021.
“The market continues to stay very strong. What’s also interesting is that minority financing further ticked up from the dollar value in Q2 compared to Q1,” Metzger said in an interview with VentureBeat. “That’s going to determine the kind of the future gaming companies that we have. The more money that flows into the industry on the private side further builds momentum for the companies that will exit in the future.”
VentureBeat‘s Dean Takahashi explained that COVID-19 lockdowns have caused immense growth in the gaming sector. He went on to say that, halfway through this year, the amount of money being put into the video game market is nearly double the amount that was invested in 2020.
The Profit‘s Take:
These numbers were shocking. There were 169 mergers and acquisitions worth $23 billion in the first half of 2021, alone. There were 364 private investments made in the industry worth $4.8 billion, as well as an additional 37 public markets and closed IPOs that brought in $11.2 billion. I am blown away by the number of deals, the size of them, and the money being thrown around in the industry. I think we might see $100 billion of transactions in the gaming industry this year.