Video game M&A exceeds $100B in gross transaction value in 2022
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.
- For the past decade, the total M&A value has been between $3 billion and $24 billion per year.
- Two billion-dollar deals in June — Savvy Gaming Group acquiring a stake in Embracer Group and Joffre Capital acquiring a majority stake in Playtika — pushed the year's total so far passed $100 billion.
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.