The gaming industry has seen a surge in mergers and acquisitions due to the shift towards mobile gaming, the rise of esports, and the industry’s consolidation. Mobile games now make up more than half of the global video games market, with Zynga recently acquired by Take-Two Interactive for $12.7 billion to expand its mobile gaming business. Esports, a multi-billion industry, has also been growing in popularity, with companies such as Activision and Tencent making strategic acquisitions to enter the market. The gaming industry is projected to continue growing, making it an attractive investment opportunity for investors.
Gaming Industry Sees Surge in Mergers and Acquisitions
Introduction
The gaming industry has seen an unprecedented surge in mergers and acquisitions in the last few years. The industry, which was worth around $152 billion in 2019, is now projected to be worth $200 billion by 2023, making it an attractive investment opportunity for many investors. The pandemic has only accelerated this trend as people all over the world turned to gaming for entertainment during lockdowns.
The Shift to Mobile Gaming
One of the main reasons for the surge in mergers and acquisitions is the shift to mobile gaming. Mobile games now make up more than half of the global video games market. The popularity of mobile games has driven up the value of companies such as Zynga, which was recently acquired by Mobile gaming giant, Take-Two Interactive, for a whopping $12.7 billion. The acquisition is expected to help Take-Two expand its mobile gaming business and tap into the lucrative Asian market.
The Rise of Esports
The rise of esports has also fueled the surge in mergers and acquisitions. Esports, which is the competitive form of gaming, has been growing in popularity and is now a multi-billion dollar industry. Several companies have made strategic acquisitions to enter the esports market, including Activision, which acquired Major League Gaming in 2016, and Chinese tech giant, Tencent, which acquired Riot Games, the maker of League of Legends, in 2015.
Consolidation of the Industry
The gaming industry has also seen a consolidation of companies. Large companies such as Microsoft, Sony, and Electronic Arts have been acquiring smaller studios to strengthen their portfolios and expand their client base. For example, Microsoft recently acquired Zenimax Media, the parent company of Bethesda Softworks, for $7.5 billion. The acquisition gives Microsoft access to popular franchises such as Doom, Fallout, and The Elder Scrolls.
The Future of the Gaming Industry
The gaming industry is expected to continue to grow in the coming years, with mobile gaming and esports leading the way. The surge in mergers and acquisitions is likely to continue as companies look to expand their offerings and tap into new markets. Investors are also likely to keep an eye on the gaming industry as an attractive investment opportunity.
Conclusion
The gaming industry has seen a surge in mergers and acquisitions in recent years, driven by the shift to mobile gaming, the rise of esports, and the consolidation of the industry. The industry is expected to continue to grow in the coming years, making it an attractive investment opportunity for many investors.