Drake Star's Q3 2024 report indicates consistent growth in mergers and acquisitions within the global gaming sector

In the gaming sector, merger and acquisition (M&A) activities have risen for a fourth consecutive quarter. During this time, 56 M&A deals were announced, generating $2.5 billion in known deal value.

The latest Drake Star Global Gaming Report for the third quarter of 2024, which reviews recent transactions in the games sector, indicates a public market resurgence with a 10.2% increase over the first nine months of 2024.

Notably, the $2.5 billion total does not account for undisclosed transactions, such as the purchase of Tango Gameworks and the Hi-Fi Rush intellectual property by Krafton from Xbox.

This report highlights 56 officially disclosed M&A arrangements during the quarter, marking a 70% rise compared to the same period the previous year. Additionally, $1.1 billion was secured in private financing through 181 agreements.

Andreessen Horowitz and Bitkraft are recognized as the leading gaming venture capital firms over the past year, with Play Ventures also being prominent.

The study notes that Playtika's acquisition of SuperPlay, valued at $700 million at the time of closing and $1.95 billion with earn-out, was the largest transaction of the quarter. Other significant buyers include Tencent (Aojue Digital), Warner Bros. Discovery (Player First), Krafton (Tango Gameworks), Capcom (Minimum Studios), Keywords (Wushu Studios), Nazara (Fusebox, Deltias Gaming), and Infinite Reality (LandVault).

The projection for the future suggests that M&A activity will "continue to strengthen for the remainder of this year and into the next, driven by declining interest rates and a gradual recovery in the public gaming market."