Is Game Industry M&A in 2022 in Trouble?
Last year, I believed that the nature of game industry consolidation was at the cusp of significant change.
Two posts that addressed some of the significant changes occurring:
- The Warning | Game Companies Face Structural Transition in 2021
- Four Growth Paradigms: Zynga, Applovin, Skillz, and Jam City Part 1 and Part 2
After a 5-year bull run in M&A last year by the likes of Chris Petrovic during his run at Zynga and other companies like Stillfront, Embracer, and MTG, it certainly felt as if a change were in the air.
Investor expectations demand growth. To feed the beast of growth, M&A would continue. However, how many more targets were left?
There was a sense that M&A would shift from mid-tier scale targets. As supply (at least of “easy” targets) in the mid-tier market dried up, I believed there would be a shift to larger and smaller scale targets.
So, where are we now? What happened, and what’s likely to transpire in 2022?
To find out, I called on three of the best people in the games industry to answer this question and comment on what’s likely to happen moving forward.
- Saad Choudri, CEO at Miniclip
- Joseph Kim, CEO at LILA Games (Moderator)
- Michael Metzger, Partner at Drake Star Partners
- Chris Petrovic, Chief Business Officer at FunPlus
Check out this stellar panel with a super interesting discussion in which we discuss:
4:13 Activision to Microsoft
12:16 Zynga to Take-Two
25:30 Current M&A Landscape
39:25 Potential Targets
48:17 Playtika Acquisition
51:52 Carve-Out Opportunities