Gaming deals activity in 2022: 782 closed deals totaling $55.7 billion, public offerings plummet

InvestGame has published a report on deal activity in the games industry in 2022. Analysts highlighted the biggest trends and offered their investment forecasts for the near future.

There were 782 closed gaming deals totaling $55.7 billion in 2022 - InvestGame

  • According to the latest InvestGame report (spotted by GI.biz), there were 782 closed deals in 2022, totaling $55.7 billion. This doesn’t include Microsoft’s proposed acquisition of Activision Blizzard, which has yet to be cleared by antitrust regulators, or any other announced deals.
  • M&A deals grew 7% year-over-year to $41 billion, followed by private investments ($10.1 billion, down 16% year-over-year) and public offerings ($4.6 billion, down 82% year-over-year).

  • The deal activity in the games industry has slowed down since peaking in 2021, but InvestGame thinks that “there is potential for a few significant deals to occur in 2023, as the industry continues to consolidate, supported by strong investors’ interest and enough cash to pursue transformative deals.”

  • Makers Fund was the most active VC gaming fund in 2022, with 14 deals totaling $533 million. It is followed by Index Ventures (3 deals, $300 million), Lightspeed Ventures (6 deals, $273 million), and Andreessen Horowitz (11 deals, $248 million).
  • InvestGame expects VC funds to continue its hunt for early-stage gaming companies in 2023, as they have billions of cash to deploy.
  • Late-stage investments, on the other hand, are now slowing down, with just 16 deals with $900 million in disclosed value closed in 2022. Compared to 2021, it is a 2x and 4.7x decline in deal count and value, respectively.

More insights, including data on Web3 gaming deals and corporate investment activity, can be found in the full report.

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