The gaming industry experienced a strong resurgence in mergers and acquisitions (M&A) and financing activity in 2024, signaling a return to growth after a period of decline. According to the Drake Star Global Gaming Report for the year, the sector recorded 967 transactions with a total disclosed deal value of $27.3 billion. This represented a 39% increase compared to 2023, reflecting renewed investor confidence and industry expansion. The public markets also showed signs of recovery, with the Drake Star Gaming Index rising by 10.4% over the year, driven by positive performance from companies such as Sea / Garena, DeNA, and Konami.

Drake Star Global Gaming Report 2024

Increase in M&A Activity with Major Acquisitions

The report highlighted a significant increase in M&A activity, with 198 announced deals totaling $10.5 billion in disclosed value, representing a 21% rise in deal volume from the previous year. Several high-profile acquisitions took place, including EQT’s $2.8 billion acquisition of Keywords and CVC’s $1.1 billion purchase of Jagex. Additionally, Playtika’s acquisition of SuperPlay for up to $1.95 billion and Embracer Group’s $1.2 billion divestment of EasyBrain to Tencent / Miniclip were among the major deals shaping the industry.

Among different gaming segments, the PC and console sector led in M&A activity with 53 deals, followed by the mobile sector with 38 deals and platform and tools companies with 32 transactions. The increase in M&A activity was driven by a mix of strategic consolidations and private equity investments, indicating strong market confidence and ongoing industry restructuring.

Modest Rebound in Gaming M&A Deals

Private Placements and Investor Interest Grow

In addition to M&A transactions, private placements saw substantial growth in 2024, with a total of $4.8 billion raised across 711 deals. This represented a 30% increase in total disclosed value compared to 2023, although the number of deals declined by 8%. A notable trend in private placements was the dominance of early-stage financings, which accounted for more than 90% of total raises.

Among the largest financing rounds, Epic Games secured a $1.5 billion investment led by Disney, while Infinity Reality raised $350 million. Other significant funding rounds included Build A Rocket Boy’s $110 million raise and Aonic’s $105 million investment. The blockchain gaming segment remained the most active in terms of financing, with 250 deals, followed by platform and tools companies with 133 transactions and mobile gaming companies with 111 transactions.

Institutional investors also showed strong interest in the gaming sector, with over $1.8 billion secured through follow-on funds and new capital commitments. Key investors included a16z, which raised $600 million, Bitkraft with $275 million, and Vgames with $142 million. New funds were also established, such as Big Time’s $150 million fund and Beam Ventures’ $150 million initiative, signaling continued investor confidence in the sector.

Gaming Private Placements 2024

Public Markets Show Recovery with Notable IPOs

Public gaming companies also experienced a positive year, as reflected in the 10.4% growth of the Drake Star Gaming Index. This recovery was supported by strong performances from companies such as Sea / Garena, DeNA, and Konami, although others, including Corsair, WeMade, and Unity, recorded weaker performances.

One of the most notable public market developments was Shift Up’s highly successful initial public offering (IPO) in South Korea. Additionally, GameStop raised $3 billion, further underscoring renewed investor interest in publicly traded gaming companies. As valuations of listed gaming companies continued to improve, the industry saw growing expectations for more IPOs in the near future, particularly among Indian gaming companies.

Gaming Public Markets: Drake Star Gaming Index

Outlook for 2025: Continued Growth

The outlook for the gaming and technology sector in 2025 remains positive, with expectations for continued M&A activity, strategic investments, and regulatory developments shaping the market. As the valuations of listed gaming companies rebound, there is anticipation of a significant increase in M&A activity, with key players such as Savvy / Scopely, Tencent, KRAFTON, Keywords Studios / EQT, Jagex / CVC, and Infinite Reality expected to be active participants.

Private equity firms are also projected to remain highly engaged in the gaming sector, with speculation that some publicly traded gaming companies may be taken private. Ubisoft has been identified as a potential candidate for delisting in 2025, reflecting the broader trend of private equity interest in established gaming companies.

With over $1.8 billion in new capital raised by investment funds in 2024, the market is likely to see a steady pipeline of seed and early-stage financings, along with select mid-to-late-stage funding rounds. Growth areas are expected to include artificial intelligence, technology platforms, and blockchain, particularly as the crypto market continues its recovery and the U.S. government signals support for digital assets.

The industry is also poised for strong revenue growth in 2025, driven by major game releases and hardware advancements. The highly anticipated launches of the Nintendo Switch 2 and Grand Theft Auto 6 are expected to boost player engagement and overall industry revenues. This growth could further support increased fundraising and M&A activity as gaming companies seek to capitalize on the expanding market.

As public markets continue to recover, there is an expectation that IPO-ready gaming companies will go public in 2025, contributing to the sector's broader growth. The emergence of Indian gaming companies in the IPO market is also anticipated, further diversifying investment opportunities in the gaming industry.

2025 Market Outlook

Final Thoughts

The Drake Star Global Gaming Report for Q4 2024 highlights a year of strong growth in gaming M&A and financing, marking a notable rebound from the previous year. Increased deal activity, renewed investor confidence, and public market recovery contributed to a positive trajectory for the sector. Looking ahead to 2025, continued consolidation, strategic investments, and major game releases are expected to drive further expansion in the gaming industry. The full report provides additional insights into market trends, deal activity, and financial performance across various gaming segments.