The video game industry is so hot, that big companies are scouring the earth for acquisition opportunities
Take-Two Interactive, for example, just announced a deal to acquire a Serbian mobile game developer for hundreds of millions of dollars.
The deal, which calls for the acquisition of Nordus, will cost Take-Two cash and $90 million in newly issued TTWO stock. But, with incentives, the deal could be worth $378 million.
With smaller mobile developers being gobbled up by larger players, valuations in the industry have soared.
Already this year, industry profits are expected to exceed $180 billion, with mobile gaming accounting for nearly 60% of all revenue within it.
But the trend of bigger profits and bigger valuations is just beginning. Industry experts predict 2022 could be a much more profound year for investors in the space.
As larger game companies extend their search for acquisitions and investment, smaller developers and publishers are looking ever more attractive.
And as we head further into the future, some of these smaller companies, who have been shown to be more creative, more dynamic and more technologically edgy than the big boys, could have their investors set up for unicorn status.
The simple reason being supply and demand. Large developers like Take-Two are supplying incredible demand on the small-side of the market, while startups and smaller companies holding patent portfolios are numbered, and highly desired.
This could lead to insane valuations going forward. Investors in smaller developers and publishers, those with a vested interest now, could be among the biggest winners in this new demand-side gaming economy.
Read more about the Take-Two acquisition of Nordus, HERE
Or learn more about smaller developers and publishers with patent portfolios, HERE