Analysis of 2024 Gaming Mergers and Acquisitions: A Retrospective
The gaming industry has experienced a significant rebound in M&A activity in the first quarter of 2025, following a dip in deal activity towards the end of 2024. This resurgence is marked by record deal values and increased funding, signaling renewed investor confidence and dealmaking momentum.
Key acquisitions such as Microsoft's 2023 deal to acquire Activision Blizzard have reshaped the market, boosting Microsoft to the third-largest gaming company by revenue and setting the stage for continued strategic acquisitions. Industry executives expect this trend to continue, with 71% projecting increased M&A activity focused on acquiring high-value intellectual properties (IPs) that provide strong live-service models and transmedia potential.
Franchises like Call of Duty and Fallout are expected to be prime targets for these acquisitions. The gaming sector is also seeing growing interest from both private and public buyers aiming to expand service capabilities, scale, and innovation through acquisitions, particularly targeting companies with operational management solutions and fan engagement analytics.
Additional drivers shaping M&A dynamics include widespread adoption of AI for game asset generation, which is boosting development efficiency and margins for leading franchises, and the rising synergy between mobile and PC gaming platforms that enhance monetization potential.
The outlook is for gradual M&A growth through the rest of 2025, driven by strategic purchases of scalable, high-margin IPs and technological innovation adoption. Investors are advised to prioritize companies excelling in these areas.
Notable Acquisitions and Transactions
Several notable acquisitions and transactions have taken place in the gaming industry in recent months. For instance, Modern Times Group acquired Plarium for US$620m, with additional deferred consideration and a stretch earn-out target of up to US$170m. Scopely acquired a selection of Niantic's app portfolio for US$3.5bn in 2025, while Playtika acquired SuperPlay for US$700m, with additional contingent consideration of up to US$1.25bn based on financial performance over the next three years.
Nintendo has also made moves to centralise its porting pipeline by acquiring Shiver Entertainment, a studio known for porting games to the Switch console. Tencent-owned Miniclip expanded its mobile games offering with the acquisition of EasyBrain for US$1.2bn, and Shift Up, the studio behind titles Goddess of Victory: Nikke and Stellar Blade, listed on the Korea Exchange in July at a valuation of 3.48 trillion won (circa. US$2.6bn).
Company Splits and IPOs
The Embracer Group has split into three separate public companies: Embracer Group, Asmodee Group, and Coffee Stain & Friends. Asmodee Group has been spun-off and relisted on Nasdaq Stockholm during early 2025. In H1 2024, Reddit successfully IPO'd on the New York Stock Exchange.
Coffee Stain & Friends plans to be separately listed, while Middle-earth Enterprises & Friends is retained as part of the core group. The split is intended to enable them to offer more differentiated equity stories and to focus on executing their respective core strategies.
The Future of the Gaming Industry
Looking ahead to 2025 and beyond, the gaming industry is expected to continue its growth trajectory, with a focus on IP quality, technology-driven productivity, and cross-platform monetization. The anticipated release of the Nintendo Switch 2 is expected to increase consumer spend and potentially lead to further M&A activity.
Tencent has invested €1.2bn in a spin-off subsidiary of Ubisoft, aimed at driving the development of Ubisoft's premier titles in 2025. The Emmy Award-winning Fallout TV show, launched in 2024, reached 100m viewers and resulted in a peak of 5m players for the Fallout IP, despite the last mainline release coming out almost a decade ago, demonstrating the enduring appeal of older titles among gamers.
Older games with variable gameplay loops or vast, immersive worlds continue to be popular among gamers, with the ten most-played games of 2023, on average, released seven years ago according to a recent study by Newzoo. The game-as-a-platform model has shown resilience among gamers, with Fortnite and Roblox continuing to attract a recurrent player base.
In summary, the gaming M&A landscape is increasingly centered on IP quality, technology-driven productivity, and cross-platform monetization for sustained growth through 2025 and into 2026.
- The gaming sector's boom in M&A activity extends beyond traditional gaming, with technology companies showing interest in casino-and-gambling and sports sectors, aiming to leverage their operational management solutions and fan engagement analytics for growth.
- Innovations such as AI-driven game asset generation and the synergy between mobile and PC gaming platforms, for instance, boost development efficiency and monetization potential, making technology a significant focus in the gaming industry's future growth strategies.
