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Video game M&A exceeds $100B in gross transaction value in 2022

Jul 15, 2022
Video game M&A gross transaction value, by year
Data: S&P Global Market Intelligence; Chart: Axios Visuals

Only halfway through the year, the total gross transaction value of M&A in the video game industry has surpassed $100 billion, according to S&P Global Market Intelligence.

Why it matters: The gaming space is now a major category in the TMT M&A playbook, going from a niche corner to an industry driving significant consolidation.

Context: The $100 billion figure is driven in large part by Microsoft's $79.6 billion Activision Blizzard deal.

Yes, but: Even if that deal were removed, the year's total would be $22.6 billion. That exceeds the totals of most of the past decade, with half of 2022 remaining.

What they're saying: S&P Global Market Intelligence research analyst Neil Barbour says one reason for the rise of consolidation and investments is that the annual revenue for the video game industry reached $195 billion last year, according to his firm's estimates.

  • "It's hard to ignore the enormous revenue opportunity that's happening inside of gaming," Barbour says.

What's next: Barbour says he expects more M&A in the video game industry to happen this year, noting recent reports about Electronic Arts.

  • "There's plenty of evidence to suggest that the deal table is still open for business. Whether or not any major deals get done is another story," Barbour says.
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