Kongregate’s Post

✨ACQUISITIONS AND CREATIVITY✨ 🎮 Acquisitions can be great for the gaming industry, but at what point do they become harmful? 🗣️ Former Sony CEO Shawn Layden has expressed some concerns towards this. 💭 He thinks that it restricts creativity among genres and variety in games, and gives way to a lack of direction and drive within departments. 💸 On the other hand, it generates more revenue and provides financial security. ❓What do you think? Read the full article here: https://lnkd.in/eZfw-Chs #technology #gamingindustry #creativity

According to our Q2'24 Global Gaming Deals Report, M&A activity showed a slight growth in terms of the number of deals, with 37 announcements, while the total amount remained relatively stable at around $0.5B across all deals. This pattern represents a gradual recovery phase, suggesting that while significant players are more selective, strategic acquisitions are still in motion as companies adapt to the new market dynamics.

Insightful examination of the unique stability of the gaming sector in the midst of fluctuating market conditions, well done Rick Arpin! How do you leverage this stability in your strategic planning for M&A activities? #MarketStability #StrategicPlanning #MergersandAcquisitions #GamingIndustry #KPMGUS #KPMGLasVegas

Gaming investments hit US$2.2 billion in Q1 (vs US$755 million last year Q1) across 178 transactions, of which Disney's $1.5 billion investment in Epic Games contributed to 67%. M&A activity in Q1 grew 382% year-on-year to US$2 billion via 41 deals, of which the acquisition of Kahoot by Goldman Sachs and other investors for US$1.6 billion represents 76%. https://lnkd.in/dirhQaTv

Last week, we presented our Global Gaming Deals Activity Report for Q1-Q3’23. Here are some of the most significant findings. Beginning in 2023, the M&A activity witnessed a notable decrease, with total exit value approaching $8.5B, 3.8x times below avg. amount of the previous two years. The main contributors, accounting for over 75% of the overall value, were the acquisitions of Scopely by Savvy Games Group ($4.9B), a public takeover of Rovio by SEGA (~$0.8B), and the acquisition of Techland by Tencent (undisclosed). https://lnkd.in/e3gYJGYT

What combination of game studios leads to competitive advantage? Bundle or unbundle? How do you execute a bundle strategy? Centralization vs. decentralization? The recent unwinding of Embracer Group into 3 separate companies potentially has lessons for all of us in the games industry. Going back to Ronald Coase's "The Nature of the Firm" to today thinking about what level of scale and combination of assets makes the most sense, we speak to the master himself: Chris Petrovic. Chris spearheaded Zynga's incredibly successful run of acquisitions from Harpan, Peak, Gram, Rollic, Small Giant, etc. Hear, from arguably, the industry's best about what happened and what the future outlook for M&A in the games industry. As always, Pixel & Profits recorded with my co-hosts, the Pixel Bros: Matthew Kanterman, CFA and Brian Peganoff. Link to the full discussion in the comments. You don't want to miss this one!

While deal activity has been slower in 2023, the #Gaming sector as a whole has returned to growth and projections for the future are starting to look more positive. A huge amount of dry powder is ready for deployment, and as early- and growth-stage companies reach the point of raising fresh capital or considering M&A exits next year, deal activity is expected to return. For more on the latest developments in the global gaming market, read InvestGame's new #GamingDealsReport: https://bit.ly/40WogqK #VideoGames #GamesIndustry #TMC #MergersandAcquisitions

The reason M&A in gaming exploded during the past 5 years is NOT (only) revenue. There’s a much longer game that’s being played. Companies don’t just buy a money-making machine. They’re buying innovation and Live ops expertise. They’re buying user engagement know-how. They’re buying first-party data. They’re buying an IP. When you focus on these, you’re looking at the future, not the present.    Acquisitions in gaming are about long-term growth.   #gaming #mobilegames #mergersacquisitions

Great insights into deal activity in the video games sector

Apollo Global Management, Inc. is among the potential suitors seeking to acquire IGT’s global gaming division, Bloomberg News reported. IGT’s gaming unit could fetch $4bn to $5bn in a sale, including debt. You can get to know more about Apollo's strategies at the UK Private Equity conference, where Robert Seminara will be delivering a keynote session. UK-based IGT said in June that it was exploring strategic alternatives for its global gaming and PlayDigital segments, which includes, but is not limited to, a sale.The two segments generated about $436m in revenue in the first quarter of this financial year. #PEInsights #privateequity #acquisition #gamingindustry