Games industry dealmaking reaches all-time high as M&A hits $161bn in 2025

Global games industry mergers and acquisitions climbed to a record $161 billion in 2025, marking the most active year on record for large-scale dealmaking, according to data from Drake Star Partners’ Global Gaming Report 2025.

Two transactions accounted for the bulk of total value. Electronic Arts completed a $55 billion buyout, while Netflix’s proposed $82.7 billion acquisition of Warner Bros. reshaped the competitive landscape across gaming, media, and technology. Together, the deals underscored the growing convergence between games, entertainment, and platform ecosystems.

Beyond the headline transactions, strategic consolidation remained active across mobile, console, and games infrastructure. Scopely’s $3.5 billion acquisition of Niantic’s games business ranked among the year’s largest strategic moves, while Tripledot Studios’ $800 million purchase of AppLovin’s gaming division highlighted continued interest in established mobile portfolios. Netflix also extended its gaming technology footprint with the acquisition of avatar platform Ready Player Me late in the year.

While M&A surged, financing activity showed a more uneven pattern. Deal volume reached a low point in the second quarter of 2025, with 105 funding rounds recorded, before rebounding in the second half of the year. Activity increased to 118 rounds in Q3 and accelerated further to 137 rounds in Q4, signaling renewed investor confidence heading into 2026.

Private financing was led by mobile and AI-focused companies. Notable transactions included a $2.5 billion investment in Dream Games by CVC and Blackstone, alongside growth-stage rounds such as Lingokids’ $120 million raise, Good Job Games’ $60 million financing, and Million Victories securing $40 million. These deals reflected continued capital concentration around scalable mobile studios and data-driven technologies.

Investor participation remained broad across stages. Larger funds such as Play Ventures, Bitkraft, and Griffin Gaming Partners were among the most active in 2025, while Impact46, Merak Capital, and TIRTA played prominent roles at the seed stage. The report also points to the emergence of new user acquisition-focused funds aimed at helping mid-stage mobile developers scale more efficiently.

Looking ahead, Drake Star projects a positive outlook for games and technology M&A in 2026. Private equity is expected to remain a central force, particularly as more publicly listed gaming companies are viewed as potential take-private candidates. At the same time, early-stage investment is forecast to remain resilient, supported by selective mid-to-late-stage rounds.

Across both M&A and financing, the report identifies artificial intelligence, user-generated content, developer tools, and gaming technology platforms as the primary investment themes likely to shape deal activity in the year ahead.