Dealmaking activity in the video game industry continued to face various challenges during the first quarter of 2023, according to InvestGame’s new report. During the period, 193 gaming deals were made in total, with a combined value of over $2.1 billion. That mark significant decrease compared to the 277 deals made in Q1 2022 which had a total value of $15.4 billion.
According to the Q1’23 Gaming Deals Report, private investments reached the $1 billion mark with a total of 141 deals. While that’s down 71% compared to the 180 deals ($3.3B) made in Q1 2022, the deal count is up from 114 in the previous quarter (the total value dropped by around $100 million though).
‘’This growth is primarily driven by Early-stage and Corporate deals, while Late-stage deals remain stagnant,’’ said InvestGame in its report.
M&A activity, on the other hand, experienced a significant drop in the first quarter of 2023, when it saw 43 deals with a total sum of $0.6 billion, down 94% compared to 88 deals ($11.4B) in Q1 2022.
However, despite a slow start, the second quarter of this year has already seen two notable M&A deal announcements: Savvy Games Group’s acquisition of Scopely for $4.9 billion, and Sega Sammy’s acquisition of Rovio for $776 million. In addition, if Microsoft’s proposed $69bn Activision acquisition, which has recently been approved by EU regulators, goes through, this would surpass the total deal value of $41 billion seen last year.
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When it comes to public offerings, the recession in the gaming industry continued in the first three months of 2023. Only 9 deals were made during the period, with a combined value of $0.5 billion, down from $0.7 billion in Q2 2022.
‘’In the near quarters the trend will probably continue; however, we may see some notable Offerings from main strategic investors based on TTWO Public Offering in the amount of $1B,’’ InvestGame added.