In 2021, the dollar value of M&A deals in the video game industry reached a record $85 billion. That was three times greater than 2020. Now, the industry has broken yet another deal value record, surpassing $100 billion through June.
According to Kagan, a research group within S&P global Market Intelligence, the merger and acquisition value of the video game industry, thus far in 2022, has now reached $102.21 billion.
The lead analyst at Kagan, Neil Barbour believes the enormous M&A activity we’re seeing this year is due to the industry’s perception as being a revenue generating powerhouse.
So far this year, June has tallied the second largest deal value at $3.04 billion, a tiny portion of the biggest deal month, January at $97.2 billion. In January, you may recall, Microsoft offered nearly $69 billion for Activision-Blizzard, the largest game acquisition proposal ever.
This deal, which was expected to close by June of 2023, could gain regulatory approval by next month, as gamer.com reports.
Analyst estimates for total deal value by years’ end range anywhere from $150 billion to $200 billion. Meaning many more deals could already be in the works, regardless of current market conditions.
However, once the current bear market ends, deal values across all industries have the potential to quickly ramp up, before valuations on acquisition targets rebound with a new bull market.
Eying potential buyout targets in the video game industry, however, seems immaterial to current market conditions. As stated earlier, over $3 billion in deals occurred in June, as the S&P 500 slipped by over 8%.
Read more about the current state of M&A in the video game industry, HERE
Or explore potential buyout targets, HERE
Source: https://www.tvtechnology.com/news/video-game-sector-manda-tops-dollar100b