According to investment bank Drake Star Partners, the video game industry has already set a record for the number of deals in a year. This comes after it was reported that 527 agreements have been made so far this year in the gaming industry worth more than $49 billion.
Drake Star said 142 deals were announced between January and May. These agreements had a total value of $21 billion. Special purpose acquisition companies (SPACs) raised $4.2 billion. Private gaming organizations made an additional $4.2 billion. Public markets saw companies raise $19.6 billion in initial and secondary public offerings.
“The rapid consolidation, financings, and IPOs make sense, and I don’t see it slowing down,” said Michael Metzger, a partner at Drake Star Partners, in an email. “It’s a reflection of how the public capital market sees the gaming sector. It’s the largest segment within media and continues to show strong growth. Many companies in the space are highly profitable, and the sector has proven to be resilient to downturns.”
(All information was provided by Venture Beat)