Even though the global video game market is somewhat volatile right now, that’s not stopping investments in the gaming space. According to Drake Star Partners, 651 merger and acquisition deals have been closed in the first half of 2022, resulting in $107 billion being injected into the industry.
This represents an increase in both areas when compared to 2021. In the first half of last year, 635 deals were disclosed, bringing $60 billion into the sector. So far, 2022 has already exceeded the total value of all deals that took place in 2021 ($85 billion).
“The outlook has continued to be healthy, considering the continued consolidation,” said Michael Metzger, a partner at Drake Star. “Across the board, the buyers are much more focused on profitability than they were before. A lot of them just looked (in the past) at growth even if companies were losing money before. But it’s now much more focused on more quality, with a focus on cash flow than six or 12 months ago.”
Most of the M&A activity that has occurred so far this year took place during Q1 2022. In fact, the first quarter of 2022 saw M&A deals inject $98.7 billion into the industry.
Drake Star Partners originally estimated that the gaming market could see $150 billion in deals closed this year. However, it’s not clear if that number is still achievable since most of that value is dependent on the closure of “mega deals” as VentureBeat puts it.
(All information was provided by VentureBeat)
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