Sophie Blake
The gaming industry experienced a dynamic year in 2024, with mergers, acquisitions, and financings reaching new heights. According to Drake Star’s Global Gaming Report 2024, the sector saw a total disclosed deal value of $27.3 billion from over 960 transactions. This marked a 39% increase compared to 2023, underscoring a renewed momentum in the gaming market. Private equity firms played a key role, spearheading significant acquisitions such as EQT’s $2.8 billion purchase of Keywords Studios and CVC’s $1.1 billion acquisition of Jagex.
The M&A landscape witnessed a 21% increase in deal volume, with 198 deals totaling $10.5 billion in disclosed value. The PC/Console segment led the charge with 53 transactions, while Mobile and Platform/Tools followed closely with 38 and 32 deals, respectively. Notable transactions included Playtika’s $1.95 billion acquisition of SuperPlay and Tencent/Miniclip’s $1.2 billion purchase of Easybrain. However, despite robust activity earlier in the year, Q4 saw a decline in deal volume after several consecutive quarters of growth.
On the financing front, $4.8 billion was raised across 711 private placements, reflecting a 30% increase in disclosed value despite an 8% decline in deal count from 2023. Epic Games secured one of the largest rounds, raising $1.5 billion in a funding round led by Disney. Other significant investments included Infinity Reality’s $350 million and Build A Rocket Boy’s $110 million. Blockchain emerged as a key segment with 250 deals, followed by Platform/Tools and Mobile. Early-stage deals accounted for over 90% of the total capital raised.
Public markets also witnessed noteworthy developments. Applovin announced a $3.55 billion debt offering primarily for refinancing, while Sony became the largest shareholder in KADOKAWA, investing $318.5 million. Embracer Group initiated a $987 million debt restructuring to divide its operations into three separate entities. The IPO landscape featured standout successes, including Shift Up’s public listing in Korea and GameStop’s $3 billion fundraising initiative.
Looking ahead to 2025, Drake Star remains optimistic about the gaming and tech markets. With strategic consolidations, continued private equity interest, and evolving regulations, deal activity is expected to remain vibrant. Key industry players such as Tencent, Sony, Keywords Studios, and KRAFTON are anticipated to lead the next wave of acquisitions. Additionally, Embracer’s newly separated entities, once listed independently, are expected to play a pivotal role in shaping the future market landscape.
As public valuations recover, the market is likely to see a surge in IPO activity, including listings from Indian gaming companies. Furthermore, with over $1.8 billion in new capital raised by funds in 2024, investors are expected to fuel a strong pipeline of early-stage financing rounds. Key growth segments, including AI, blockchain, and tech platforms, are set to gain traction, driven by the resurgence of the crypto market and supportive regulatory developments.
The gaming industry’s growth prospects are further bolstered by major releases anticipated in 2025, such as the highly awaited Nintendo Switch 2 and Grand Theft Auto 6. These developments are likely to drive player engagement, revenues, and fundraising opportunities, setting the stage for a transformative year in gaming.
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