According to the DDM Game Investment Review’s latest quarterly update, the dealmaking continued in the video games business at an unprecedented level during the second quarter. $18.2 Billion was invested in mergers and acquisitions while $7.4 Billion in investment were made.
A year and half later, the hot market is still attracting heavy investment in the game industry. It’s estimated that it has a global value of more than $160billion. According to Digital Development Management (the consultancy responsible for tracking game-specific deals in Western markets), the combined two quarters for 2021 have more than doubled 2020’s full-year M&A record and almost doubled 2020’s total investments.
The quarter saw nearly 70 acquisitions and mergers, with a reported value exceeding $18.2 million. Although the volume of transactions was not as high as Q1, it was nearly twice the amount of the first quarter. It was also the largest quarter of DDM’s decade-long data collection. Publishers and game developers were responsible for more than half of the deals.
Reverse mergers, which brought PlayStudios and IronSource into the public sector as well as Electronic Arts, were some of the most significant deals.
Epic Games’ late-stage $1 billion round was the largest investment in the quarter. It was held as Epic Games was about to enter an antitrust case against Apple.
This deal accounted for 15 percent of DDM’s quarterly investment estimates and was larger than all nine other largest. DDM’s totals also include $700 million of undisclosed investments. According to the company, the estimated undisclosed deals amounts were based upon historical patterns and data accumulated over a decade in industry tracking.
The quarter saw 43 seed-round investment, representing 43 percent of all totals. This was because startups were able to find backers. Mobile and tech/other were the most popular sectors that received money (including Epic investments).
The pandemic has seen the game industry boom in almost every sector, including mobile and PC. However, some esports organisations were financially hit by losing live events early, which were an integral part of their business models. With the advent of virtual reality gaming and new consoles by Sony and Microsoft, the business has seen a boom.Publited at Thu 29 July 2021, 02:25.34 (+0000).