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Financing for gaming companies is on an upward trend for the first quarter of 2024 according to Drake Star Partners. Both mergers and acquisitions (M&A) transactions and private placements saw modest gains in Q1 2024.
“After a long decline from over 80 deals back in Q3 2022, it seems we’re like on an uptick again with 47 M&A deals. It’s a modest uptick, but at least an uptick on the M&A side and very similar if you look at the financing side,” said Michael Metzger, managing partner, media & tech investment banking at Drake Star Partners. “There’s obviously still a lot of challenges out there, but I think both of these developments are pretty exciting.”
Gaming M&A in Q1 2024
According to the investment bank’s latest report, there were 47 M&A transactions totaling $2.4 billion in disclosed funding. The transaction volume is below 2022’s peak, but it’s a 15% jump from the average deals closed per quarter in 2023.
Q1 2024’s 47 deals was a moderate boost over each quarter of 2023.
“A lot of companies on the M&A side have been very much inward focused over the last year with internal restructuring and layoffs. It’s not as easy to acquire other companies at the same time,” said Metzger. “I think a good amount of them feel like they’re done with the internal restructuring and are now looking at growth opportunities again.”
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The $1.1 billion acquisition of Jagex was nearly half of Q1’s M&A total.
Disclosed deal value remains volatile for M&A transactions with three deals accounting for 75% of the quarter’s total. CVC and Haveli Investments’ $1.1 billion acquisition of Jagex from the Carlyle Group contributed 46% of the total. Metzger expects private equity firms like CVC and Haveli to increase their activity throughout 2024.
Meanwhile, Take-Two’s $460 million acquisition of Gearbox Entertainment from Embracer Group contributed a further 19% of M&A deal value. Likewise, Beacon Intera …
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Are you looking to showcase your brand in front of the gaming industry’s top leaders? Learn more about GamesBeat Summit sponsorship opportunities here.
Financing for gaming companies is on an upward trend for the first quarter of 2024 according to Drake Star Partners. Both mergers and acquisitions (M&A) transactions and private placements saw modest gains in Q1 2024.
“After a long decline from over 80 deals back in Q3 2022, it seems we’re like on an uptick again with 47 M&A deals. It’s a modest uptick, but at least an uptick on the M&A side and very similar if you look at the financing side,” said Michael Metzger, managing partner, media & tech investment banking at Drake Star Partners. “There’s obviously still a lot of challenges out there, but I think both of these developments are pretty exciting.”
Gaming M&A in Q1 2024
According to the investment bank’s latest report, there were 47 M&A transactions totaling $2.4 billion in disclosed funding. The transaction volume is below 2022’s peak, but it’s a 15% jump from the average deals closed per quarter in 2023.
Q1 2024’s 47 deals was a moderate boost over each quarter of 2023.
“A lot of companies on the M&A side have been very much inward focused over the last year with internal restructuring and layoffs. It’s not as easy to acquire other companies at the same time,” said Metzger. “I think a good amount of them feel like they’re done with the internal restructuring and are now looking at growth opportunities again.”
GB Event
GamesBeat Summit Call for Speakers
We’re thrilled to open our call for speakers to our flagship event, GamesBeat Summit 2024 hosted in Los Angeles, where we will explore the theme of “Resilience and Adaption”.
Apply to speak here
The $1.1 billion acquisition of Jagex was nearly half of Q1’s M&A total.
Disclosed deal value remains volatile for M&A transactions with three deals accounting for 75% of the quarter’s total. CVC and Haveli Investments’ $1.1 billion acquisition of Jagex from the Carlyle Group contributed 46% of the total. Metzger expects private equity firms like CVC and Haveli to increase their activity throughout 2024.
Meanwhile, Take-Two’s $460 million acquisition of Gearbox Entertainment from Embracer Group contributed a further 19% of M&A deal value. Likewise, Beacon Intera …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]