Compared to 70 M&A transactions in the second quarter of 2022, the number of game company mergers and acquisitions in the third quarter increased to 81.
Unity’s $4.4 billion ironSource was the largest single acquisition of the quarter. Although most of the transaction amount this quarter was not disclosed, a number of leading companies were actively involved in acquisitions, including Embracer Group’s acquisition of eight companies including Middle-Earth. Enterprises, NetEase acquire Detroit: Become Human development company Quantic Dream.
Private equity deals were also more active in the third quarter, growing from 169 in the previous quarter to 216, with a total funding of US$2.3 billion, including Tencent and Sony investment of 260 million USD in FromSoftware and Loot Mogul’s super sports platform is 200 million USD, etc. However, due to the lack of large-scale single transactions, the total investment transaction volume still decreased compared to Q2.
It is worth mentioning that despite the overall pressure on the crypto market, investors still showed a strong interest in the sector, so more than half of the amount invested in the quarter ($1.2 billion) has been for games participating in the company’s blockchain business.
What is the future of the game market? Drake Star rates 2022 as the “year of the era” and makes a series of predictions about the recent development of the gaming industry. 2022 saw record consolidation, diversification, and total investment in the gaming industry, and we believe this will truly continue as investment and merger activity ramps up towards the end. this year.
“The year 2022 has been a tumultuous year, and we observed a significant market recovery in the third quarter. Microsoft and Tencent, two of the world’s largest strategic companies, have announced publicly. that it will continue to acquire more game companies, and that Savvy Group, led by Saudi Arabia’s sovereign wealth fund, will also increase its investment in game companies. We expect there will be more large transactions in the fourth quarter,” a representative of Drake Star said.
Given the decline in valuations of listed companies around the world, many listed companies are now taking this opportunity to pay attention to high-quality acquisition targets with high profitability potential in the market. . Drake Star predicts that in addition to large transactions, there will be many more small and medium-sized M&A deals appearing in the fourth quarter.
During the first half of 2022, IPOs and SAPC listings in the gaming sector remained silent. In the third quarter, the gaming industry finally returned with e-sports company FaZe Clan’s SPAC listing, Valofe and Asia Innovations Group’s SPAC listing plan, as well as special effects and gaming segments. by Technicolor.