Investment Banker Expects Gaming Acquisitions Will 'Increase Steadily Over the Next Year' - News
by William D'Angelo , posted on 01 November 2023 / 3,219 Views
Drake Star partner Michael Metzger, an investment banker, expects the amount of acquisitions and merger sin the video game industry to increase over the next year.
"Based on our discussions with many of the top gaming companies in the last weeks, we expect the deal volume to increase steadily over the next year," Metzger told Axios.
Metzger anticipates Sony, Tencent, Take-Two and Savvy/Scopely will be the most active when it comes to acquiring studios in 2024, while Embracer Group is expected to divest more studios that it currently owns.
"While it is true that it is harder for founders to raise an early stage round and even harder to raise a growth/late stage round compared to 2021, it is also true that we have never had more gaming-focused VC funds than now," Metzger added.
"Valuations have come down, but that also makes it more attractive for VCs to invest now in the future unicorns."
A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012 and taking over the hardware estimates in 2017. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel. You can contact the author on Twitter @TrunksWD.
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Playstation is going to aquire Microsoft and then Nintendo is going to buy Playstation .
Love having everything under the umbrella of a small handful of companies...
And there are people on this site who think certain megacorps are a rich uncle or Santa Claus that will give them free shit.
But but companies are our friends..
Only if talking about number of studios (and very small) because in value, size and scope all they together won't be bigger than ABK alone.
Good for him. Bet he also invested in NFTs, he's hoping to make his money back somehow.
The market leaders Tencent, Playstation and Microsoft when it gets those sweet COD revenues shouldn't be able to buy up any massive publishers/devs.
Take 2 should be able too buy up studios I think and could give more studio's more financial security and budget for larger games. Take 2 should not only be relying on GTA/RDR. Something that's possible with acquiring existing promising studio's.
