Drake Star Partners: Game deals could nearly double to $150B in 2022
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Game deals are expected to nearly double to $150 billion in 2022, according to a forecast by investment bank Drake Star Partners.
The report noted that gaming mergers and acquisitions, private financing, and public offerings have already exceeded all of last year’s $85 billion in just January alone, said Michael Metzger, partner at Drake Star, in an interview with GamesBeat.
2021 was a record year for deals in video gaming, with $85 billion of value across 1,159 announced or closed deals. That was up almost three times compared to 2020. It came because of gaming’s historic growth during the pandemic when people turned to games to distract themselves during lockdowns. Those habits continued as lockdowns lifted and returned and lifted again, and game companies prospered.
“For this year we’re envisioning we’re gonna exceed $150 billion, and we’ve already surpassed all of 2021 with just the four deals that were announced this month,” Metzger said. “I still see a ton of activity in the space. I don’t really see it slowing down. It feels like some of the public companies are even more focused on acquisitions.”
Three top investment pros open up about what it takes to get your video game funded.
More than 100 game-focused venture capital funds have been pouring money into game studios, and big companies like Embracer Group, Microsoft, Stillfront, Sony, Tencent, and others have been acquiring game studios by the dozen. Game companies have also been going public through public offerings (like Roblox, Unity, Playtika) and special purpose acquisition companies (SPACs) like
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