According to the latest report from Drake Star, the third quarter of 2025 marked a significant moment for the global gaming industry with Electronic Arts’ $55 billion acquisition by the Saudi Arabia Public Investment Fund (PIF) and Silver Lake consortium.
This deal represents the largest leveraged buyout in gaming history and underscores the increasing scale of mergers and acquisitions within the sector. Alongside EA, several other notable transactions contributed to a surge in M&A activity, signaling a period of consolidation and strategic growth across both traditional and digital gaming markets.
Global Gaming Report Q3 2025
Surge in Gaming Mergers and Acquisitions
Q3 2025 saw a total of 50 gaming M&A deals, the highest number in the past four quarters. Among these, Aonic acquired Prime Insights for $250 million, KRAFTON purchased Eleventh Hour Games for $96 million, and DoubleDown completed its $76 million acquisition of WHOW Games.
Analysts suggest that these deals are part of a broader trend of strategic expansion, with major publishers and private investors seeking to strengthen portfolios and capitalize on high valuations in both domestic and international markets.
Global Gaming Report Q3 2025
Private Financing Shows Signs of Recovery
After six consecutive quarters of decline, private financing in gaming experienced a rebound with 115 funding rounds in Q3 2025. Significant investments included Lingokids securing $120 million, Good Job Games raising $60 million, and Appcharge obtaining $58 million.
Mobile gaming studios were particularly prominent, with five of the largest rounds in the quarter going to mobile-focused developers. Leading investors such as BITKRAFT, Play Ventures, and Griffin Gaming Partners continued to shape the landscape, while seed-stage funds like Impact46, 1AM Gaming, and 1UP Ventures backed early-stage studios.
Global Gaming Report Q3 2025
Public Gaming Stocks Outperform Broader Markets
Public gaming equities saw strong performance during Q3 2025, with the Drake Star Western Gaming Index up 31.3% year-to-date, outperforming the S&P 500’s 14.3% gain. Notable performers included Roblox, which rose 136.9%, Unity at 77.9%, and everplay at 75%.
The broader Drake Star Index, which tracks the top 35 global gaming companies, increased 23.7% YTD. Financial activity among gaming companies also included Light & Wonder raising $1 billion in new debt financing, Azerion Group issuing $260 million in bonds, and Turtle Beach securing a $150 million senior credit facility.
Outlook for Gaming M&A and Investment in 2026
The resurgence of public gaming equities is expected to fuel continued M&A activity in 2026. Strategic buyers are likely to take advantage of elevated valuations to pursue acquisitions that support long-term growth. Private equity momentum remains strong, with top funds targeting public gaming companies for take-private deals and high-performing private studios becoming prime acquisition targets.
Analysts also highlight ongoing interest in AI tools and blockchain gaming, with mobile game studios likely to remain a focus for investors in the coming quarters. Coffee Stain Group is anticipated to complete its IPO following its spin-off from Embracer, while a potential listing for Discord in 2026 remains a key event to watch.
Frequently Asked Questions (FAQs
What was the largest gaming M&A deal in Q3 2025? Electronic Arts’ $55 billion leveraged buyout by the Saudi Arabia PIF and Silver Lake consortium was the largest gaming acquisition of the quarter and the largest leveraged buyout in gaming history.
How many gaming M&A deals were completed in Q3 2025? A total of 50 mergers and acquisitions were recorded, the highest number in the previous four quarters.
Which private gaming companies raised the most funding in Q3 2025? Lingokids raised $120 million, Good Job Games $60 million, and Appcharge $58 million, marking significant rounds in a quarter that saw a resurgence in private financing.
Which investors were most active in gaming investments? BITKRAFT, Play Ventures, and Griffin Gaming Partners were the most active larger funds, while seed-stage activity was led by Impact46, 1AM Gaming, and 1UP Ventures.
How did public gaming stocks perform in Q3 2025? The Drake Star Western Gaming Index rose 31.3% YTD, outperforming the S&P 500. Roblox, Unity, and everplay were among the top performers.
What is the outlook for gaming M&A in 2026? Industry analysts expect continued M&A growth, driven by strategic acquisitions, elevated valuations, private equity interest, and sustained investment in mobile, AI, and web3 gaming sectors.
