A new InvestGame report reveals that investments in gaming companies are cooling off. Merger and acquisition activities were also less in the third quarter of 2022.
The total deal value is 124.5 billion USD, double compared with 62.4 billion USD in 2021 in the same period. Microsoft’s pending acquisition of Activision Blizzard accounts for 55% of the total value. Without the $69 billion merger, the annual trend would have dropped 11%. Transaction value has “closed” down 12% ($51.4 billion in 2022 compared to $58.8 billion in 2021). Similarly, the number of “closed” transactions also decreased from 709 to 626, a decrease of about 12%.
InvestGame also pointed out special types of investment that are attracting attention in the third quarter. Private investment and public offering tend to decrease compared to recent years. These market movements have a number of causes such as investor demand, market volatility. The report points to the current difficult macroeconomic situation, changes in user engagement levels after the pandemic, pressures after the IDFA, the agency that regulates the increased scrutiny, changes to the release date. practices, supply chain issues, and other factors affecting gaming company purchases.
The number of transactions of game companies is shown in the chart.
However, these changes can also be partly explained by a change in overall strategy. Recently, value per transaction increased by 16% in Q3 while the number of transactions decreased by 31%. This suggests that some investors are being more selective about the brands they invest in, investing more capital in potential companies.
The number of transactions by game companies increased (up 2.8 times compared to the same period last year), but the total transaction value decreased (932 million USD compared to 1.09 billion USD). This shows the growing caution from investors in the game. These trends suggest that gaming is seen as a more stable market than blockchain’s potential environment.
The report has just been published.
The growth of the games market has led to consolidation as shown in 5 transactions that contributed nearly 65% of the total transaction value of 37.6 billion USD which are:
+ Take-Two Interactive acquires Zynga for $12.7 billion+ Sony acquires Bungie for $3.6 billion+ Embracer Group acquires Asmodee for $3.1 billion+ Saudi Arabia’s Public Investment Fund (PIF) buys Nintendo shares for $2.7 billion+ Joffre Capital buys Playtika for $2.2 billion
InvestGame has tracked and ranked game investors in the game over the years. With Embracer Corporation, Savvy, Tencent, NetEase and several Western game companies expected to have more significant M&A activities coming up. In addition, InvestGame partnered with Hiro Capital, Naavik and White Label PR to release a report on game trading activity next year.
