Gaming M&A and financings in 2024 saw a robust year, with $27.3B in disclosed deal value across over 967 transactions, a 39% increase in disclosed value compared to 2023. Public markets showed signs of recovery with the Drake Star Gaming Index growing 10.4% for the year.

The Drake Star Global Gaming Report 2024 analyzes Gaming and Esports dealmaking in 2024 and the last quarter of the year and outlines what to expect for the coming year and beyond.

Download the full report below. 

Highlights include: 

• M&A activity in 2024 experienced a 21% increase in deal volume over 2023, with 198 announced deals and $10.5B in disclosed value. As predicted, several high-profile M&A deals emerged from private equity firms, including EQT’s $2.8B acquisition of Keywords and CVC’s $1.1B purchase of Jagex. Other major transactions included Playtika’s acquisition of SuperPlay for up to $1.95B and Embracer Group’s $1.2B divestment of EasyBrain to Tencent / Miniclip.
• The PC / Console segment remained the most active in M&A with 53 deals, followed by Mobile with 38 and Platform / Tools with 32.
• A total of $4.8B was raised across 711 private placement deals, reflecting a 30% increase in total disclosed value but an 8% decline in deal count compared to 2023.
• Major financings included Epic’s $1.5B round led by Disney, along with significant raises for Infinity Reality ($350M), Build A Rocket Boy ($110M), and Aonic ($105M). Early-stage deals made up over 90% of total raises. Blockchain remained the most active segment with 250 deals, followed by Platform / Tools (133) and Mobile (111).
• Investors secured $1.8B+ in funding, including follow-on funds from a16z ($600M), Bitkraft ($275M), Vgames ($142M), and Play Ventures ($140M), along with new funds launched by Big Time ($150M) and Beam Ventures ($150M).
• The most notable public deals included Shift Up’s highly successful IPO in Korea and GameStop’s $3B fundraising.
• The Drake Star Gaming Index, which tracks the top 30 global gaming companies on an equal-weighted basis, rose 10.4% for the year, driven by strong performances from Sea / Garena, DeNA, and Konami. Meanwhile, Corsair, WeMade, and Unity were the weakest-performing stocks.

Outlook

• We have a very positive outlook of the gaming and tech market in 2025 with strategic consolidations, private equity interest, and an evolving regulatory landscape shaping deal activity.
• As the valuations of listed gaming companies continue to rebound, we anticipate a significant uptick in M&A activity. Key buyers to watch include Savvy / Scopely, Tencent, KRAFTON, Keywords Studios / EQT, Jagex / CVC, Infinite Reality, and Sony, along with the newly separated Embracer companies once they are listed independently, such as Asmodee.
• Private equity firms are expected to remain very active, with several publicly traded gaming companies potentially being taken private. Ubisoft could be among the larger candidates for a delisting in 2025.
• With over $1.8B in new capital raised by funds in 2024, signaling renewed investor interest, we anticipate a strong pipeline of seed and early-stage financings, along with select mid-to-late-stage rounds.
• Key growth segments are expected to include AI, tech platforms, and blockchain, driven by the strong recovery of the crypto market this year and the new U.S. administration's endorsement of digital assets.
• With major releases such as the Nintendo Switch 2 and Grand Theft Auto 6 anticipated in 2025, the gaming industry is poised for significant growth in player engagement and revenues. This surge could further drive fundraising and M&A opportunities for gaming companies.
• With public markets rebounding in 2025, we anticipate IPO-ready gaming companies to go public this year. We also anticipate the start of a wave of IPOs of Indian gaming companies.

Sources: CapIQ, Pitchbook & Drake Star Research. See the full report for notes on the Drake Star Gaming index and other disclosures.

Download the full report below.