Drake Star: Gaming M&A and Financing Surged by 39% in 2024
Deal News | Jan 30, 2025 | EIN
In 2024, the gaming industry experienced a notable financial upswing, with mergers and acquisitions (M&A) and financings growing by 39% to a disclosed deal value of $27.3 billion across 967 transactions, as highlighted in a report by Drake Star Partners. Despite a challenging year marked by stagnant revenues and workforce reductions, the gaming sector showed resilience. A significant rise of 21% in M&A deal volume saw 198 deals with a disclosed value of $10.5 billion. Key private equity transactions included EQT's acquisition of Keywords for $2.8 billion and CVC's purchase of Jagex for $1.1 billion. Within this framework, private financing surged, although skewed by Disney's rare $1.5 billion investment in Epic Games. Overall, sectors like PC and console gaming led the M&A activity, while private placements concentrated on innovative segments like blockchain. Public markets began to recover, spurred by positive gaming index performances, setting encouraging prospects for 2025, particularly with potential listings and strategic consolidations in the works.
Sectors
- Gaming Industry
- Private Equity
- Financial Services
Geography
- Global – The report covers gaming industry transactions globally, with key activities involving firms in various countries, including the US, Asia, and Europe.
Industry
- Gaming Industry – This industry is relevant due to the report being centered on M&A and financing activities within the gaming sector, focusing on public and private company transactions.
- Private Equity – The involvement of private equity firms, such as EQT and CVC, in significant gaming acquisitions highlights the sector's role in shaping industry dynamics.
- Financial Services – The industry is involved due to financial transactions related to M&A, equity, debt, and private placements highlighted in the article.
Financials
- $27.3 billion – Total disclosed deal value for gaming M&A and financings in 2024.
- $10.5 billion – Total disclosed value for M&A deals in 2024.
- $2.8 billion – EQT's acquisition of Keywords.
- $1.1 billion – CVC's purchase of Jagex.
- $1.95 billion – Playtika's acquisition of SuperPlay, including earnouts.
- $1.2 billion – Embracer Group's divestment of EasyBrain to Tencent's Miniclip.
- $1.5 billion – Disney's investment in Epic Games.
- $4.8 billion – Total raised across 711 private placement deals.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Drake Star Partners | M&A Consulting Firm | Company | A consulting firm providing analysis and insights on M&A activities in the gaming industry. |
| EQT | Private Equity Firm | Company | Acquired Keywords for $2.8 billion. |
| CVC | Private Equity Firm | Company | Purchased Jagex for $1.1 billion. |
| Disney | Investor | Company | Invested $1.5 billion in Epic Games. |
| Epic Games | Gaming Company | Company | Recipient of a $1.5 billion investment from Disney. |
| Playtika | Acquirer | Company | Acquired SuperPlay for up to $1.95 billion. |
| Embracer Group | Divesting Company | Company | Sold EasyBrain to Tencent's Miniclip for $1.2 billion. |
| Tencent's Miniclip | Acquirer | Company | Acquired EasyBrain for $1.2 billion. |
| Infinity Reality | Private Financing Recipient | Company | Received $350 million in funding. |
| Michael Metzger | Participant | Person | Partner at Drake Star Partners, providing insights on M&A trends. |