Expect more gaming mergers and acquisitions
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Mergers and acquisitions have been a hot topic in gaming for a few years, but it’s become a nuclear center of attention following Microsoft’s recent announcement that it is buying Activision Blizzard for about $69 billion.
What is driving this new level of activity? At a panel moderated by Gearbox CFO Jenna Hardy at our GamesBeat and Facebook Gaming Summit, we had a chance to listen to a few experts explore this topic.
“I think it really starts with the notion of scale, and that’s what M&A (mergers and acquisitions) really brings you in a short period of time, more scale in your business,” said Chris Petrovic, chief business officer at FunPlus. He also noted the need to diversify as another driver.
“We see a few major trends,” said Hemal Thaker, global head of gaming and interactive entertainment investment banking at Goldman Sachs, noting that investors want growth and visibility of revenue streams. M&A achieves both of these things. And it allows big gaming companies to reach more gamers while diversifying their portfolios, making them less susceptible to risk from a single flop.
The 2nd Annual GamesBeat and Facebook Gaming Summit and GamesBeat: Into the Metaverse 2
January 25 – 27, 2022
“They’re also looking for a global pool of talent,” said Affan Butt, founding partner at Aream & Co., noting that acquisitions and mergers give companies a chance to better reach audiences in new territories.
Hardy knows something about acquisitions, as Embracer Group bought Gearbox last year, noting that it was important for
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