In the first half of 2021, total gaming deals have surpassed $60 billion, according to investment bank Drake Star Partners.
Game deals began firing off during the pandemic as lockdowns forced people to explore alternative means of entertainment. Because of this, gaming revenues ramped up to all-time highs as more users than ever began playing.
But even as much of the globe has reduced or eliminated lockdowns, the industry is still on fire. More than 635 deals were announced and closed already this year.
Mike Metzger, partner at Drake Star said “the market continues to stay very strong. What’s also interesting is that minority financing further ticked up from the dollar value in Q2 compared to Q1. That’s going to determine the kind of the future gaming companies that we have. The more money that flows into the industry on the private side further builds momentum for the companies that will exit in the future.”
In the first half of the year, the industry has seen 169 M&A deals valued at $23 billion.
Private placement raises totaled $4.8 billion, with Activision Blizzard investing $100 million in Playstudios alone.
In the public markets, 37 IPO’s were announced totaling $11.2 billion with $16.4 billion in secondary and debt offerings.
PUBG maker, Krafton, said it would go public with a $25 billion valuation.
The market shows no signs of slowing down as more companies are raising money, going public and experiencing M&A at record paces.
Smaller companies with exciting and patented technology should now see skyrocketing valuations as the promise of big-fish buyouts grows stronger.
Owning patents for in-game adtech, like those held by TCI Entertainment, could lead to valuations with multiples over traditional gametech companies.
Read more about the first half of 2021 HERE.