InvestGame, an analytics company, has released a report on the situation in the Gaming Market Investment for the first three quarters of 2023. Both in terms of deal volume and number of deals, this year is currently the lowest in terms of business activity, by far, in the last 3 years.

Private Investment

  • At the end of the first three quarters of 2023, private capital deployed totaled $2.3 billion. This is 4 times less than the 2021-2022 average.
  • The number of deals was also down 23%.
  • Early-stage deals were less affected by the crisis. In the first 3 quarters of this year, there were 110 (vs. 80 in 2022) – worth $400 million (vs. $6.41 in 2022).
  • It’s harder in the later stages. There have been fewer fallow rounds due to unclear exit prospects. In the first 3 quarters, there were 8 deals (vs. 13 in 2022) for $300 million (vs. $745 million in 2022).
  • Despite the negative picture, business activity has returned to pre-Oscar levels. There is hope for growth going forward.
  • The third quarter of 2023 saw a significant increase in investments in AI startups. There were 21 deals totaling $268.1 million – an increase from the first half of this year.

M&A

  • In the first 3 quarters of 2023, total M&A deals totaled $8.5 billion. This is 3.8 times less than the 2021-2022 average.
  • Three deals – the acquisition of Scopely ($4.9 billion), Rovio ($0.8 billion), and Techland (amount not disclosed) – brought in more than 75% of the total volume.
  • The statistics do not include the $68.7 billion deal between Microsoft and Activision Blizzard, which closed in October (Q4).

Public offerings in Gaming Market Investment

  • If you exclude AppLovin’s $1.5 billion debt refinancing, public offerings in the first 3 quarters of 2023 are down 29%.
  • High-interest rates, poor results of exited IPOs, low valuations, and the recession all make public offerings an unpopular option for companies.

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