Video games are a thriving industry that regularly drives big-ticket mergers and acquisitions (M&A) each year.

Over the last five calendar years, the value of M&A deals in the gaming sector reached $192.7bn. The key themes driving these deals included online gaming, mobile gaming, online gambling, and social media.

Video games attract big-ticket M&A deals every year

GlobalData’s thematic analysis of M&A deals announced in 2022 reveals that when measured by deal value, cloud, gaming, and connectivity were the top three themes driving deals, followed by big data, social media, and cybersecurity, which drove the top 100 M&A deals by deal size.

In 2022, we saw some of the biggest deals in the video games industry, including Microsoft’s $68.7bn bid to acquire Activision Blizzard, Take-Two Interactive’s $12.7bn acquisition of Zynga, Sony’s $3.6bn purchase of Bungie, and Savvy Gaming’s $1bn acquisition of ESL. The trend persists in 2023 with Savvy Gaming buying Scopely for $4.9bn, followed by Sega’s acquisition of Rovio for $776m.

Why are video games companies so attractive?

The consistent growth in gaming M&A deals is attributable to multiple factors, including:

• Talent and technology: With the increasing complexity of video games, companies need to have the best developers and designers to create high-quality games that can capture the attention of gamers. M&A is a strategy for companies to acquire talented game developers, game designers, and other personnel who can provide a competitive edge.
• Intellectual property: Most successful video game franchises are built on unique technologies, such as game engines, motion capture systems, and artificial intelligence. By acquiring these technologies, companies can gain a competitive advantage and create better games that stand out in the market.
• Market share: The video games industry is a hyper-competitive market, with companies constantly vying for market share. As a result, M&A activity can be a means for companies to gain a larger market share, expand their product portfolio, and diversify their revenue streams. Larger companies can expand their offerings and access new markets and audiences by acquiring smaller game studios or publishers.
• New themes: A trend driving M&A activity in the video game industry is the rise of new gaming platforms and technologies, such as cloud gaming, augmented and virtual reality, mobile gaming, and metaverse. Companies from both tech and non-tech sectors are seeking to make positions in emerging disruptive themes, and the easiest way to excel in a theme is to acquire one that is already established within it.

Will the trend continue in the coming years?

Video games will see robust M&A activity in the next five years. Key M&A drivers will be the growing need for game publishers to expand their user bases, improve user engagement, create content by incorporating emerging technologies, and diversify monetisation strategies.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

View profiles in store

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

Submit

UK USA Afghanistan Åland Islands Albania Algeria American Samoa Andorra Angola Anguilla Antarctica Antigua and Barbuda Argentina Armenia Aruba Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bermuda Bhutan Bolivia Bonaire, Sint Eustatius and Saba Bosnia and Herzegovina Botswana Bouvet Island Brazil British Indian Ocean Territory Brunei Darussalam Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Cape Verde Cayman Islands Central African Republic Chad Chile China Christmas Island Cocos Islands Colombia Comoros Congo Democratic Republic of the Congo Cook Islands Costa Rica Côte d"Ivoire Croatia Cuba Curaçao Cyprus Czech Republic Denmark Djibouti Dominica Dominican Republic Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Falkland Islands Faroe Islands Fiji Finland France French Guiana French Polynesia French Southern Territories Gabon Gambia Georgia Germany Ghana Gibraltar Greece Greenland Grenada Guadeloupe Guam Guatemala Guernsey Guinea Guinea-Bissau Guyana Haiti Heard Island and McDonald Islands Holy See Honduras Hong Kong Hungary Iceland India Indonesia Iran Iraq Ireland Isle of Man Israel Italy Jamaica Japan Jersey Jordan Kazakhstan Kenya Kiribati North Korea South Korea Kuwait Kyrgyzstan Lao Latvia Lebanon Lesotho Liberia Libyan Arab Jamahiriya Liechtenstein Lithuania Luxembourg Macao Macedonia, The Former Yugoslav Republic of Madagascar Malawi Malaysia Maldives Mali Malta Marshall Islands Martinique Mauritania Mauritius Mayotte Mexico Micronesia Moldova Monaco Mongolia Montenegro Montserrat Morocco Mozambique Myanmar Namibia Nauru Nepal Netherlands New Caledonia New Zealand Nicaragua Niger Nigeria Niue Norfolk Island Northern Mariana Islands Norway Oman Pakistan Palau Palestinian Territory Panama Papua New Guinea Paraguay Peru Philippines Pitcairn Poland Portugal Puerto Rico Qatar Réunion Romania Russian Federation Rwanda Saint Helena, Ascension and Tristan da Cunha Saint Kitts and Nevis Saint Lucia Saint Pierre and Miquelon Saint Vincent and The Grenadines Samoa San Marino Sao Tome and Principe Saudi Arabia Senegal Serbia Seychelles Sierra Leone Singapore Slovakia Slovenia Solomon Islands Somalia South Africa South Georgia and The South Sandwich Islands Spain Sri Lanka Sudan Suriname Svalbard and Jan Mayen Swaziland Sweden Switzerland Syrian Arab Republic Taiwan Tajikistan Tanzania Thailand Timor-Leste Togo Tokelau Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Turks and Caicos Islands Tuvalu Uganda Ukraine United Arab Emirates US Minor Outlying Islands Uruguay Uzbekistan Vanuatu Venezuela Vietnam British Virgin Islands US Virgin Islands Wallis and Futuna Western Sahara Yemen Zambia Zimbabwe Kosovo

Industry * Academia & Education Aerospace, Defense & Security Agriculture Asset Management Automotive Banking & Payments Chemicals Construction Consumer Foodservice Government, trade bodies and NGOs Health & Fitness Hospitals & Healthcare HR, Staffing & Recruitment Insurance Investment Banking Legal Services Management Consulting Marketing & Advertising Media & Publishing Medical Devices Mining Oil & Gas Packaging Pharmaceuticals Power & Utilities Private Equity Real Estate Retail Sport Technology Telecom Transportation & Logistics Travel, Tourism & Hospitality Venture Capital

Tick here to opt out of curated industry news, reports, and event updates from Verdict.

Submit and download

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The traditional demands to add games and users will also fuel M&A activity in the video games market. In addition, non-gaming companies from sectors like advertising, retail, and tourism will also expand into the video games market through acquisitions.

The growing emphasis of tech giants (e.g., Microsoft, Amazon, Tencent) and disruptors (e.g., ByteDance, miHoYo, Niantic) on mobile gaming, cloud gaming, esports, augmented reality, virtual reality, and the metaverse will intensify M&A activity across the video games industry.