Global Gaming Report 2023
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* – transactions executed by current Drake Star Partners employees while employed at other firms
2
* * *
163
758
39
$10.5B
$3.6B
$5.6B
• With $8 6B in disclosed value for closed deals, 2023 was a record year for gaming from a deal value standpoint,
mainly due to the much -awaited closing of Microsoft’s acquisition of Activision in Q4’23 after over a year of
regulatory tussle. The total disclosed value for announced deals was just over $20B in 960 deals during 2023,
tracing back to pre -COVID levels.
• 163 M&A deals were announced during 2023 with over $10.5B in disclosed deal value. Savvy Games Group/PIF’s
acquisition of Scopely for $4.9B led the chart and Kahoot’s acquisition by Goldman Sachs consortium ($1.7B) and
Techland’s majority acquisition by Tencent ($1.6B) were the only other $B+ deals during the year. The deal value of
most of the mid -sized and smaller deals was not disclosed.
• PC / console was again the most active M&A segment (44 deals), closely followed by mobile (37) and platform/tools
(25). Deal activity went back to pre COVID levels as early as Q1 with Q3 reporting the lowest number of deals, and
a 30% quarterly growth in Q4 again.
• Over $3.5B was raised in 750+ financing rounds of private companies, comparable to the $3.4B raised in 2020
(excluding the large Epic Games deal). Mobile was the most active segment (168), followed by blockchain (159) and
platform/tools (143). Top financings were VSPO ($265M), Candivore ($100M) and Second Dinner ($100M). The
most active VCs in early to late stage included Bitkraft , a16z, Play Ventures and Griffin Gaming while the most
active seed stage VCs were Goodwater Capital, 1Up Ventures, Sfermion and Shima Capital.
• Drake Star Gaming Index saw a gradual recovery during the year (11.5%), outperforming the broader markets
during the first seven months of the year while sliding below in the 2 nd half. VanEck Video Gaming ETF was up
32.4% for the year.
3
Note: Public Markets include IPOs, SPACs, and Public FinancingsSource: CapIQ, Pitchbook & DSP Research Note: Deal count includes announced M&A, private placement, IPOs, SPACs, and public financing deals. Drake Star did not act as financial advisor on transactions listed on this page
$90B
Disclosed value for announced
and/or closed deals
• With 43 announced deals, M&A activity picked up compared to the last quarter (33 deals). While there were no large
value deals, M&A activity for smaller / midsized deals remained healthy but most of them with undisclosed deal
value. Top deals for the quarter included Aonic /nDreams , Keywords/The Multiplayer Group, MTG/ Snowprint and
Devolver /System Era.
• Over $600M was raised in 162 private financing deals in Q4, as the financing market in converging to the pre –
COVID levels. Some of the notable raises were Animoca Brands ($50M), Leonardo.Ai ($47M), Strikerz ($40M) and
ON ($25M). Over 85% of the financings were for seed and early -stage companies as investors remained cautions
on mid to late -stage financings.
• In public markets, gaming companies saw a strong rebound from its lows in October with Drake Star Gaming Index
recovering all its losses (growing over 13%). Grand Centrex Limited (GCL), a Singapore -based video game
distributer and publisher, is going public on Nasdaq via a SPAC deal valued at $1.2B.
Public Markets PP M&A
$ 8 6 B
Disclosed value for closed deals
96 5
Closed d eals
$20B
Disclosed value for announced
deals
960
Deals announced
246
723
938
758
$0
$2
$4
$6
$8
$10
$12
$14
2020 2021 2022 2023
Value ($B) Deal Count
187
295
315
163
(30)
20
70
120
170
220
270
320
$0
$45
2020 2021 2022 2023
Value ($B) Deal Count
4
Note: Deal value not to scale; Column chart shows announced deals only
$105
$45
Note: Column chart shows announced deals only
Note: Drake Star did not act as financial advisor on transactions listed on this page
Mobile Apr -23 $4,900.0 $4,900.0 –
Mobile Jul -23 $1,720.0 $1,720.0 –
PC/Console Jul -23 $1,580.0 $1,580.0 –
Mobile Apr -23 $775.0 $775.0 –
Mobile May -23 $422.0 $422.0 –
Mobile Sep -23 $300.0 $80.0 $220.0
Mobile July -23 $165.0 $89.4 $75.6
VR/AR Nov -23 $110.0 $110.0 –
Others Mar -23 $100.0 $67.5 $32.5
PC/Console Dec -23 $97.1 $97.1 –
Source: CapIQ, Pitchbook & DSP ResearchNote: Drake Star did not act as financial advisor on transactions listed on this page 5
$1.8B
$8.3B
$0.2B $0.5B
$2.2B
$7.8B
55
59
49 44
37
25
5
20
17
15
6 Note: Pie charts show announced deals
Hardware
Others
Platform/Tools
Esports
Mobile
PC / Console
Blockchain
Asia and Other
Europe
North America
eSports Feb -23 $265 .0 – $561.8 Savvy Games Group
Mobile Aug -23 $100.0 – $122.6 Haveli Investments
Mobile Sep -23 $100.0 ~$400.0 $130.0 Griffin Gaming Partners, NetEase Games
PC/Console Mar -23 $55 .0 – $55.0 Lightspeed Venture Partners, Riot Games, Bitkraft Ventures, Andreessen
Horowitz
Blockchain Sep -23 $54.0 – $84.0 Andreessen Horowitz, Endeavor, 11:11 Media, Hashed, Samsung NEXT,
Mirana Ventures, Foresight Ventures
Futureverse Blockchain Jul -23 $54.0 – $54.0 10T Holdings, Ripple
Platform/Tools Aug -23 $50.0 $500.0 $119.8 Lightspeed Venture Partners, Samsung NEXT, M12 fund, First Spark Ventures,
LG Technology Ventures
eSports Jul -23 $50.0 – $60.0 GEM Digital
Blockchain Apr -23 $50.0 – $70.0 GEM Digital, OKX, Binance, Epic Games
Hardware Feb -23 $50.0 $180.0 $85.0 NCSoft , Samsung Electronics, Verizon Ventures, Liberty Global Ventures,
Corning, LG Technology Ventures, Khosla Ventures, Others
Blockchain Nov -23 $50.0 – $943.3 Saudi Arabia’s NEOM
Platform/Tools Jun -23 $48.0 – $65.0 Sony Innovation Fund, HBSE Ventures, NBCUniversal, PayPal Ventures,
021fund, BITKRAFT, Samsung NEXT
Platform/Tools Dec -23 $47.0 – $47.0 Blackbird Ventures, Goodwater Capital, Piton Capital, Riverwood Capital,
Samsung NEXT Ventures, Serena Capital, Side Stage Ventures, Others
PC/Console Mar -23 $40.0 – $40.0 Andreessen Horowitz, Nexon, Makers Fund, BITKRAFT Ventures, Kingsway
Capital, Hashed
PC/Console Dec -23 $40.0 – $40.0 Christiano Ronaldo, Others
7 Source: CapIQ , Pitchbook & DSP Research Note: Drake Star did not act as financial advisor on transactions listed on this page
$0.5B
$0.5B
$1.5B
$0.5B
$0.6B
270
306
81
88
9 4
$502M
$719M
$640M
$501M
$907M
117
169
145
20
78
45
160
24
$1.9B
$0.8B
$0.8B
611
88
59
8 Source: CapIQ , Pitchbook & DSP Research
Late
Mid
Early
Hardware
Others
Platform/Tools
VR / AR
Esports
Mobile
PC / Console
Blockchain
$10M -$50M
$5M -$10M
$100M+
$50M -$100M
$0 -$5M
Undisclosed
9
M&A
Public
Markets
• Grand Centrex, a Singapore -based video game publisher and distributor, signed an agreement to go public via merger with RF Dynam ic
LLC, a special purpose acquisition company, valuing Grand Centrex at $1.2B . The company will be listed on Nasdaq under “GCL” ticker
• Aonic Group issued $70M worth of senior secured callable floating rate bonds to finance the investment in the remaining recently
acquired shares in nDreams . The remaining proceeds will be used to finance general corporate purposes of the Group,
Fundraising
• Animoca Brands, a game publisher with hundreds of investment in Web3 games, raised $50M from Saudi Arabia’s NEOM to build W eb3
enterprise service capabilities with global commercial applicability
• Leonardo.AI, a generative AI content production platform, received $47M financing from Blackbird, Side Stage Ventures, Smash Capital,
TIRTA Venture, Samsung NEXT and others to continue building tech and team to empower creativity around the world
• Strikerz , an international gaming company working on UFL football game, raised $40M from Christiano Ronaldo to revolutionize the
interaction between football fans and the gaming world
• GameOn Technology received $25M from Equiam , B3 Capital and others to help enterprises productize generative AI chats
• Noice , games livestreaming company, raised $21M from Bitkraft , F4 Fund and others for promoting the platform and growing its team
• Neon Machine, extraction shooter Shrapnel developer, raised $20M from Polychain Capital and others to continue game development
Note: Drake Star acted as financial advisor to Lighstream
• Aonic Group, a gaming conglomerate, acquired a prominent virtual reality game developer, nDreams for $110M to further expand its
position in VR and mixed reality games landscape
• Keywords Studios, a global provider of game and entertainment services, purchased The Multiplayer Group, a UK -based multiplayer
game development studio, for $97M to further strengthen its “Create” division
• Modern Times Group acquired a majority stake in a developer focused on free -to-play mobile midcore games, Snowprint Studios, for
$45M providing them with tools and knowledge to diversify revenues and expand its user base
• Devolver Digital acquired System Era Softworks, an award -winning, multiplatform video game developer, for $40M extending its reach
beyond premium indie titles leveraging System Era’s knowledge of Expandable Game style development
• Atari, one of the most iconic gaming industry brands, bought Digital Eclipse, a studio that specializes in preserving and rer ele asing retro
games on modern hardware, for $20M expanding its internal development capabilities
• Xsolla acquired Lighstream , Rainmaker and api.stream to further expanding its reach to influencers through Xsolla Partner Network
ON
14
18
11
North America Europe Asia and others
10
9
10
4
4
6
PC/Console Mobile
Platform/Tools Hardware
Esports Blockchain
Others
89
76
61 69
83
71
84
77
43 44
33
43
–
2 0
4 0
6 0
8 0
1 0 0
1 2 0
1 4 0
1 6 0
1 8 0
2 0 0
$0
$5
$10
$15
$20
$25
$30
Q121 Q221 Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223 Q323 Q423
Value ($B) Deal Count
10
$20
$85
11
Source: CapIQ, Pitchbook & DSP ResearchNote: Drake Star acted as a financial advisor to Lightstream on its sale to Xsolla
• Atari, an interactive company and iconic industry
brand, acquired Digital Eclipse for $22M
• Digital Eclipse focuses on the digital restoration of
classic video games. The acquisition allows Atari to
expand its internal development capabilities by
utilizing DE’s experience and proprietary technology
• Digital Eclipse receives access to world -class IP and
Atari’s management expertise for further expansion
• Devolver Digital, indie games developer and
publisher, acquired multi -platform video game
developer, System Era, for $40M
• The acquisition represents an opportunity for
Devolver to expand outside of premium indie titles
• Devolver will capitalize on System Era’s development
expertise in creating quality, community -centered,
long -life titles, proven by the success of Astroneer
• Keywords Studios, a global provider of game and
entertainment services, acquired The Multiplayer
Group for $97.1M
• The acquisition is important step in building out
Keyword’s platform and expanding offering into
specialized multiplayer game development at scale
• MPG’s leadership will remain the same and it will
continue to lead and grow multiplayer innovation
• Aonic Group, a gaming conglomerate, acquired
nDreams In a deal valued at $110M
• The acquisition signifies Aonic’s strategic move to
further consolidate on the rapidly growing landscape
of VR and mixed reality games
• nDreams brings unparalleled expertise in XR
technologies, positioning itself as a valuable asset for
other studios under Aonic’s ownership
• Xsolla, a video game commerce company, acquired
Lighstream, Rainmaker and api.stream
• Lightstream’s tools simplify content creation and
distribution. The acquisition allows Xsolla to expand
Xsolla Partner Network with the new tools and
resources for streaming and gaming content creation
• Lighstream will be able to continue enhancing the
user experience and providing additional features
• Modern Times Group acquired a 70% stake in mobile
games developer, Snowprint Studios for $45M
• The acquisition is closely aligned with MTG’s growth
strategy and enables to add a critically acclaimed
Warhammer 40,000: Tacticus game to the portfolio
• MTG will be able to accelerate Snowprint’s growth by
providing team access to Flow Platform, market
leading business intelligence and UA capabilities
$111M
$52M
$251M
$37M
$139M
23
34
43 2
16
12
26
6
$442M
$97M
$75M
140
18
4
196 195
130
202
310
183
233
212 212
199
185
162
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
Q121 Q221 Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223 Q323 Q423
Value ($B) Deal Count
Hardware Others Platform/Tools
12
Source: CapIQ, Pitchbook & DSP ResearchNote: Drake Star did not act as financial advisor on transactions listed on this page
Late Mid Early
VR / AR Esports Mobile PC / Console Blockchain
13
Source: CapIQ, Pitchbook & DSP ResearchNote: Drake Star did not act as financial advisor on transactions listed on this page
• Investors – Blackbird Ventures, Gaorong Capital,
Goodwater Capital, Piton Capital, Riverwood Capital,
Samsung NEXT, Serena Capital, Side Stage
Ventures, Smash Capital, Tirta Management
• The new funding will allow the company to hire more
sales and marketing team members as it scales out
its enterprise product. Company also plans to build its
engineering team to continue enhancing its tech
• Investors – Christiano Ronaldo
• The funding enables access to Ronaldo’s staggering
614M followers on Instagram. Ronaldo also will
actively participate and contribute to shaping UFL’s
development aiming to revolutionize the interaction
between football fans and the gaming world
• Investors – Saudi Arabia’s NEOM
• The funding is a part of NEOM’s partnership with
Animoca Brands under which companies will
collaborate to build W eb3 enterprise service
capabilities with global commercial applicability. The
new funds aim to bolster Animoca Brands’ capacity to
develop and promote the W eb3 ecosystem
• Investors –BITKRAFT Ventures, Sedona Holdings,
Team Builder Ventures, F4 Fund
• Noice aims to revolutionize social gaming with a
combination of livestreaming and multiplayer gaming
in one platform
• The fresh capital injection will be used for promoting
the platform and growing the team
• Investors – Polychain Capital, Brevan Howard Asset
Management, Franklin Templeton, Griffin Gaming
Partners, IOSG Ventures, and Tess Ventures
• Neon Machine’s goal is to create a first -person
shooter game that empowers players and creators,
offering a unique gaming experience
• The funding will support the team as they release
incremental playable versions of the game
• Investors –Equiam , B3 Capital, Commonwealth
Financial Network, Mirae Asset Venture Investments
• GameOn Technology rebranded as ON
• The fresh capital infusion will be used to focus on
empowering businesses to leverage generative AI for
creating products. Company will also use the funds to
fuel growth and expansion into new sectors
ON
VC DEALS SELECT INVESTMENTS STAGE LOCATION
11 Seed to
Early
10 Seed to
Early
10 Seed
9 Seed to
Early
9 Seed to
Early
9 Seed to
Early
8 Seed to
Early
8 Seed to
Early
5 Seed to
Early
5 Seed to
Early
14
VC DEALS SELECT INVESTMENTS STAGE LOCATION
24 Seed to
Late
13 * Seed to
Late
12 Seed to
Late
11 Seed to
Late
9 Seed to
Late
9 Seed to
Late
5 Seed to
Late
5 Seed to
Late
3 Seed to
Late
3 Seed to
Late
Source: CapIQ, Pitchbook & DSP ResearchNote: The league tables above do not include accelerator investments
15
COMPANY DISCLOSED DEAL
VALUE ($M) # OF DEALS SELECT DEALS
$1,580.0 5
$212.1 4
$4,900.0 3
– 3
– 3
$465.0 2
– 2
$110.0 2
$40.0 2
$775.0 1
Source: CapIQ, Pitchbook & DSP ResearchNote: Deal value only includes publicly disclosed transaction valuesDrake Star did not act as financial advisor on transactions listed on this page
16
COMPANY NAME TICKER COUNTRY LTM PRICE MCAP EV REVENUE EBITDA EV/REVENUE EV/EBITDA PRICE/EARNINGS REVENUE GROWTH EBITDA GROWTH EBITDA / REV North America / Europe -Mobile Focused LTM LTM LTM NTM LTM NTM LTM NTM LTM NTM LTM NTM LTM Playtika PLTK IL 30-Sep -23 $8.72 $3,202.2 $4,819.9 $2,560.3 $672.9 1.9x 1.9x 6.9x 5.9x 11.2x 11.0x -3% 1% 12% 22% 26.3% Modern Times Group MTG B SE 30-Sep -23 $8.57 $1,042.7 $696.1 $518.1 $119.8 1.2x 1.1x 5.2x 4.4x 22.8x 20.5x 4% 10% 1% 22% 23.1% Rovio ROVIO FI 30-Sep -23 $10.27 $782.3 $619.1 $313.3 $34.9 1.9x 1.7x 15.9x 9.8x 30.8x 22.8x -8% 13% -30% 73% 11.1% Stillfront Group SF SE 30-Sep -23 $1.21 $578.3 $1,048.4 $701.5 $153.2 1.4x 1.5x 6.1x 3.7x 30.3x 4.4x 5% -5% -5% 69% 21.8% GDEV GDEV CY 30-Sep -23 $2.21 $436.3 $290.2 $454.3 $23.2 0.6x NA 14.8x NA 22.5x NA -9% NA -82% NA 5.1% Huuuge HUG US 30-Sep -23 $6.82 $428.7 $299.1 $289.8 $99.5 0.9x 1.1x 2.6x 3.2x 7.5x 6.3x -12% -7% 62% 7% 34.3% Media and Games Invest M8G SE 30-Sep -23 $1.13 $179.9 $554.2 $364.4 $81.3 1.5x 1.5x 6.2x 4.9x 15.8x 10.4x 1% -6% 24% 34% 22.3% Ten Square Games TEN PL 30-Sep -23 $24.52 $178.1 $145.6 $105.1 $14.8 1.2x 1.3x 8.9x 5.2x 10.7x 9.5x -17% -6% -58% 70% 14.1% G5 Entertainment G5EN SE 30-Sep -23 $15.49 $124.9 $103.6 $125.4 $21.6 0.8x 0.8x 4.4x 3.3x 7.7x 8.4x 0.4% -1% NM 33% 17.2% Flexion Mobile FLEXM GB 30-Sep -23 $0.88 $49.8 $40.2 $83.3 $4.8 0.4x 0.4x 7.8x 5.3x NM 12.1x 15% 22% NM 52% 5.7% MAG Interactive MAGI SE 31-Aug -23 $1.38 $36.7 $27.4 $36.2 $1.1 0.7x 0.6x 10.9x 4.3x NM NM 11% 17% -47% NM 3.0% East Side Games EAGR CA 30-Sep -23 $0.36 $29.3 $26.6 $68.2 $7.0 0.4x 0.4x 3.7x 2.0x NM 9.3x -22% -4% NM 86% 10.3%
Average 1.1x 1.1x 7.8x 4.7x 17.7x 11.5x -3% 3% -14% 47% 16.2% Median 1.1x 1.1x 6.5x 4.4x 15.8x 9.9x -1% -0.7% -5% 43% 15.7%
North America / Europe –PC / Console Focused
Electronic Arts EA US 30-Sep -23 $136.81 $36,819.6 $36,742.6 $7,593.0 $1,896.0 4.8x 4.8x 17.6x 13.8x 37.9x 19.1x 4% 1% 2% 41% 25.0%
Take -Two Interactive TTWO US 30-Sep -23 $160.95 $27,372.4 $30,085.2 $5,437.9 $1,364.9 5.5x 5.2x 20.2x 28.9x NM 40.4x 26% 7% 142% 24% 25.1% Embracer Group EMBRAC B SE 30-Sep -23 $2.72 $3,643.5 $5,263.5 $3,881.2 $631.5 1.3x 1.2x 7.1x 4.4x 7.9x 7.5x NA 4% NA 75% 16.3% Ubisoft UBI FR 30-Sep -23 $25.54 $3,254.8 $4,567.1 $2,031.2 $640.9 2.2x 1.9x 7.1x 3.9x NM 12.4x -9% 14% NA 63% -31.1% CD Projekt CDR PL 30-Sep -23 $29.25 $2,922.5 $2,735.9 $251.1 $108.3 9.8x 12.6x 22.6x 23.0x 27.3x 30.1x 22% -22% 27% 1% 43.1% Paradox Interactive PDX SE 30-Sep -23 $22.41 $2,367.2 $2,286.4 $204.3 $96.4 10.3x 8.0x 20.9x 12.3x 38.2x 31.1x 25% 28% 19% 78% 47.2% Keyword Studios KW S IE 30-Jun-23 $21.17 $1,668.9 $1,735.7 $822.2 $128.4 2.1x 1.9x 12.1x 9.3x 46.8x 16.3x 27% 12% 14% 43% 15.6% PlayW ay PLW PL 30-Sep -23 $81.39 $537.2 $528.3 $57.5 $35.6 8.3x 6.3x 13.7x 9.9x 22.4x 9.9x -9% 30% -16% 34% 61.9% Remedy Entertainment REMEDY FI 30-Sep -23 $28.08 $378.7 $351.6 $37.6 -$14.2 9.3x 5.3x NM 30.3x NM NM -22% 60% NA NM -37.7% Team17 Group TM17 GB 30-Jun-23 $2.36 $339.2 $287.6 $195.6 $47.1 1.5x 1.5x 6.0x 6.2x 13.4x 9.9x 48% -3% 8% 1% 24.1% People Can Fly PCF PL 30-Sep -23 $7.49 $269.2 $224.4 $35.0 $0.3 6.4x 5.2x NM NA 16.6x NA -16% -5% -98% NA 0.9% Digital Bros DIB IT 30-Sep -23 $11.88 $169.5 $226.8 $122.5 $42.9 1.8x 1.6x 5.1x 4.1x 18.5x 10.2x -11% 11% -21% 22% 35.0% EG7 EG7 SE 30-Sep -23 $1.88 $166.5 $124.6 $198.1 $49.8 0.6x 0.6x 2.2x 2.4x NM NA 18% -5% 62% 3% 25.1% Nacon NACON FR 30-Sep -23 $1.84 $161.7 $268.5 $154.8 $11.5 1.7x 1.3x 18.3x 3.6x 20.9x 8.6x -9% 29% -50% NM 7.5% Bloober Team BLO PL 30-Sep -23 $7.02 $135.6 $128.8 $19.8 $5.6 5.9x NA 20.7x NA 54.5x NA 20% NA -22% NA 28.3% Devolver Digital DEVO US 30-Jun-23 $0.25 $110.5 $45.5 $125.4 $5.8 0.4x 0.5x 7.9x 4.6x NM NM 20% -27% NA NM 4.6% Focus Interactive ALFOC FR 30-Sep -23 $17.20 $106.3 $241.3 $226.1 $67.3 1.0x 1.0x 3.4x 2.9x NM 6.4x 74% 2% 105% 18% 29.8% CI Games CIG PL 31-Dec -23 $0.53 $97.5 $113.8 $58.0 $24.9 2.0x 3.3x 4.6x 5.7x 11.1x 21.5x 356% -40% 592% -20% 42.9% Skonec Entertainment A276040 KR 30-Sep -23 $6.57 $82.5 $64.6 $4.0 -$3.7 15.4x 6.7x NM NA NM 41.7x 8% NA NA NA -92.1% Starbreeze AB STAR B SE 30-Sep -23 $0.05 $69.2 $39.2 $54.9 $37.9 0.7x 1.2x 0.9x 2.0x 1.5x 11.7x NM -46% NM 53% 69.1% Frontier Developments FDEV GB 31-May -23 $1.67 $64.5 $52.9 $129.5 -$6.0 0.4x 0.5x NM 2.6x NM NM -8% -20% NA NM -4.6% Snail Games SNAL US 30-Sep -23 $1.21 $44.3 $50.9 $47.6 -$15.7 1.1x 0.6x NM 4.2x NM 5.5x -42% 93% NA NM -33.0% Thunderful Group THUNDR SE 30-Sep -23 $0.52 $36.7 $101.6 $294.6 $31.8 0.3x 0.3x 2.7x 2.7x 3.4x 1.7x 2% -7% 8% 11% 10.8% Zordix MAXENT B SE 30-Sep -23 $0.46 $23.4 $60.6 $115.4 $2.7 0.5x 0.5x 20.8x 3.8x NM NM 21% -4% -71% NM 2.3% tinyBuild TBLD US 30-Jun-23 $0.06 $11.5 -$2.3 $57.8 -$21.6 NM NM NM NM NM 4.1x -7% -18% NA NM -37.4% Average 3.9x 3.1x 11.3x 8.6x 22.9x 16.0x 23% 4% 44% 30% 11.1% Median 1.9x 1.6x 7.9x 4.4x 19.7x 10.9x 8% 1% 8% 24% 16.3% Source: CapIQ, As of December 31, 2023, in $M except share price, EV/EBITDA and P/E multiples less than 0 and greater than 10 0 are denoted as NM
17
COMPANY NAME TICKER COUNTRY LTM PRICE MCAP EV REVENUE EBITDA EV/REVENUE EV/EBITDA PRICE/EARNINGS REVENUE GROWTH EBITDA GROWTH EBITDA / REV Japan/Korea LTM LTM LTM NTM LTM NTM LTM NTM LTM NTM LTM NTM LTM
Sony 6758 JP 30-Sep -23 $95.13 $117,083.3 $144,499.2 $83,534.5 $9,077.9 1.6x 1.7x 13.9x 9.7x 20.4x 18.7x 23% -1% -16% 55% 10.9% Nintendo 7974 JP 30-Sep -23 $52.21 $60,779.7 $46,112.9 $11,655.8 $3,885.7 3.7x 4.4x 10.7x 13.3x 18.1x 27.5x 1% -16% -4% 16% 33.3% NEXON 3659 JP 30-Sep -23 $18.23 $15,519.6 $11,188.0 $2,811.1 $1,033.9 3.8x 3.2x 10.5x 9.3x 21.2x 17.1x 28% 16% 47% 9% 36.8% Konami Holdings 9766 JP 30-Sep -23 $52.38 $7,100.0 $5,849.6 $2,141.2 $512.4 2.6x 2.3x 10.7x 8.2x 23.9x 18.1x 4% 14% -8% 32% 23.9% Krafton A259960 KR 30-Sep -23 $149.30 $6,899.2 $4,309.8 $1,374.1 $635.5 3.0x 2.9x 6.8x 6.8x 20.3x 19.9x 1% 3% 12% 4% 46.2% Capcom 9697 JP 30-Sep -23 $32.32 $6,758.7 $5,945.9 $1,016.3 $445.3 5.5x 5.6x 12.6x 12.3x 20.8x 20.9x 70% -2% 70% 3% 43.8% Square Enix 9684 JP 30-Sep -23 $35.92 $4,308.3 $2,882.1 $2,356.2 $284.5 1.2x 1.1x 9.6x 6.8x 23.0x 15.8x -2% 7% -33% 40% 12.1% Ncsoft A036570 KR 30-Sep -23 $185.46 $3,766.3 $2,625.3 $1,404.0 $217.9 1.8x 1.7x 11.6x 15.7x 31.8x 29.9x -32% 3% -59% 26% 15.5% NetMarble A251270 KR 30-Sep -23 $44.80 $3,671.0 $5,115.6 $1,874.5 $48.7 2.6x 2.3x 42.2x 22.9x NM 65.3x -8% 14% -63% NM 2.6% Sega Sammy 6460 JP 30-Sep -23 $13.99 $3,022.0 $2,663.7 $3,084.4 $604.2 0.8x 0.8x 4.1x 5.2x 7.4x 10.1x 37% 2% 54% 20% 19.6% Pearl Abyss A263750 KR 30-Sep -23 $29.88 $1,835.3 $1,647.4 $261.5 $13.4 6.1x 6.2x NM 14.8x NM 30.5x -12% -2% -72% NM 5.1% Kakao Games A293490 KR 30-Sep -23 $19.93 $1,627.9 $2,247.7 $758.2 $121.7 2.9x 2.4x NM 12.8x NM 24.2x -15% 20% -46% 39% 16.1% W eMade Entertainment A112040 KR 30-Sep -23 $46.96 $1,571.1 $1,605.5 $448.6 -$28.9 3.4x 2.4x NM 53.4x NM 41.7x 27% 42% NA NM -6.4% DeNA 2432 JP 30-Sep -23 $9.77 $1,087.7 $880.2 $929.5 $58.5 0.9x 0.8x 10.9x 9.7x 29.9x 16.8x 4% 7% -22% 47% 6.3% GungHo Online 3765 JP 30-Sep -23 $16.68 $999.1 $172.9 $876.3 $216.6 0.2x 0.2x 0.8x 0.9x 7.3x 9.8x 34% -12% 24% 13% 24.7% Gree 3632 JP 30-Sep -23 $4.04 $690.5 $445.5 $499.7 $83.0 0.8x 1.0x 5.1x 10.1x 11.4x 18.2x -4% -13% 3% 50% 16.6% NHN Entertainment A181710 KR 30-Sep -23 $18.01 $606.9 $441.1 $1,658.0 $113.9 0.3x 0.2x 3.8x 3.0x 25.0x 10.6x 6% 10% 20% 23% 6.9% DOUBLEUGAMES A192080 KR 30-Sep -23 $36.67 $606.0 $480.1 $435.8 $155.9 1.1x 1.0x 3.0x 2.8x NM 5.7x -4% 6% 10% 6% 35.8% Com2uS A078340 KR 30-Sep -23 $37.98 $433.5 $573.2 $603.2 -$7.0 0.9x 0.9x NM 16.5x 13.8x 12.9x 18% 1% NA NM -1.2% DoubleDown Interactive DDI KR 30-Sep -23 $7.35 $364.2 $132.4 $301.9 $107.5 0.4x 0.4x 1.2x 1.2x NM 3.6x -9% 5% 8% 5% 35.6% GAMEVIL Inc. A063080 KR 30-Sep -23 $28.53 $187.8 $178.0 $113.0 $7.9 1.5x 1.3x NM 17.1x NM NM 28% 13% NM 27% 7.0% JOYCITY A067000 KR 30-Sep -23 $2.10 $146.5 $206.0 $107.8 $14.0 1.8x 1.7x 14.2x 11.2x 38.6x 14.3x -16% 8% 54% 26% 13.0% Me2on A201490 KR 30-Sep -23 $2.36 $73.8 $82.8 $80.9 $22.7 1.0x NA 3.5x NA 11.3x NA -3% NA 1% NA 28.1% Vespa A299910 KR 30-Sep -23 $73.22 $57.0 $65.3 $0.5 -$0.9 51.8x NA NM NA NM NA -94% NA NA NA NM
Average 4.2x 2.0x 9.7x 12.0x 20.3x 20.6x 3% 5% -1% 25% 18.8%
Median 1.7x 1.7x 10.0x 9.9x 20.6x 18.1x 1% 5% 2% 25% 16.1% Esports
Skillz SKLZ US 30-Sep -23 $6.24 $133.8 -$66.4 $167.8 -$91.1 NM NM NM NM NM NM -49% -4% NA 44% -54.2% Enthusiast Gaming Holdings Inc. EGLX CA 30-Sep -23 $0.22 $33.4 $43.8 $136.8 -$29.9 0.3x 0.3x NM NM NM NM -10% 8% NA 94% -21.9% W ellplayed Rizest Inc. 9565 JP 31-Oct-23 $10.38 $28.3 $28.6 $14.9 $0.4 1.8x NA NM NA NM NA 10% NA -77% NA 2.5% Guild Esports Plc GILD GB 31-Mar -23 $0.01 $7.5 $10.5 $8.7 -$6.8 1.2x NA NM NA NM NA NM NA NA NA -78.1% Super League Enterprise, Inc. SLE US 30-Sep -23 $1.52 $6.4 $5.3 $22.7 -$18.3 0.2x 0.2x NM NM NM NM NM 33% NA 48% -80.6% Esports Entertainment Group GMBL MT 30-Sep -23 $3.95 $4.2 $21.3 $16.1 -$13.9 1.3x 1.7x NM NM NM NM NM -23% NA 15% -86.7% EBET EBET US 30-Jun-23 $0.16 $2.4 $40.9 $48.2 -$3.2 0.8x NA NM NA NM NA NM NA NA NA -6.6%
Average 0.9x 0.7x NM NM NM NM -16% 3% -77% 50% -46.5% Median 1.0x 0.3x NM NM NM NM -10% 2% -77% 46% -54.2 %
Source: CapIQ, As of December 31, 2023, in $M except share price, EV/EBITDA and P/E multiples less than 0 and greater than 10 0 are denoted as NM
18
COMPANY NAME TICKER COUNTRY LTM PRICE MCAP EV REVENUE EBITDA EV/REVENUE EV/EBITDA PRICE/EARNINGS REVENUE GROWTH EBITDA GROWTH EBITDA / REV China, South East Asia (US and HKG listed) & India LTM LTM LTM NTM LTM NTM LTM NTM LTM NTM LTM NTM LTM Tencent Holdings 700 CN 30-Sep -23 $37.58 $350,868.2 $360,878.6 $82,061.9 $20,588.6 4.4x 3.9x 16.6x 9.7x 13.6x 13.8x 8% 9% 19% 75% 25.1% NetEase NTES CN 30-Sep -23 $93.16 $58,264.3 $45,215.6 $13,935.5 $3,897.5 3.2x 2.8x 11.4x 11.0x 16.5x 13.5x 6% 12% 25% 2% 28.0% Sea Limited SE SG 30-Sep -23 $40.50 $22,953.7 $21,696.4 $12,898.5 $1,460.0 1.7x 1.6x 11.8x 33.4x 34.5x 39.1x 6% 7% NA 55% 11.3% G-bits Network 603444 CN 30-Sep -23 $34.57 $2,490.3 $2,143.2 $636.5 $273.4 3.3x 3.0x 7.6x 7.2x 13.5x 16.2x -6% 8% 3% 5% 43.0% YY YY CN 30-Sep -23 $39.70 $2,413.6 -$275.4 $2,302.9 $159.0 NM NM NM NM NM 12.3x -7% 2% -46% 15% 6.9% HUYA HUYA CN 30-Sep -23 $3.66 $870.8 -$289.1 $1,030.7 -$76.2 NM NM NM NM NM NM -24% -9% NA 68% -7.4% NetDragon 777 CN 30-Jun-23 $1.58 $841.9 $551.2 $1,007.5 $192.2 0.5x 0.5x 2.7x 3.0x 8.1x 7.1x -8% 8% -26% 6% 19.1% Nazara Nazara IN 30-Sep -23 $10.29 $754.5 $708.7 $139.1 $12.0 5.1x 4.1x 55.6x 32.4x NM NA 36% 25% 13% 83% 8.6% XD Inc. 2400 CN 30-Jun-23 $1.31 $616.3 $394.3 $495.0 -$0.7 0.8x 0.7x 38.5x 4.7x NM 15.2x 23% 19% NA NM -0.1% iDreamSky 1119 CN 30-Jun-23 $0.30 $459.9 $665.1 $341.1 -$148.2 1.9x 1.8x NM NA NM 18.3x -7% 6% NA NA -43.5% Archosaur Games Inc. 9990 CN 30-Jun-23 $0.25 $200.6 -$62.8 $90.5 -$86.5 NM NM NM NM NM NA -6% 90% NA 97% -95.6% Ourgame 6899 KY 30-Jun-23 $0.03 $30.4 $3.6 $42.4 -$6.7 0.1x NA NM NA NM NA 95% NA NA NA -15.8% FingerTango 6860 CN 30-Jun-23 $0.01 $19.9 -$66.4 $103.7 -$2.5 NM NA NM NA NM NA 4% NA NA NA -2.4% Digital Hollywood 2022 CN 30-Jun-23 $0.01 $10.0 -$11.5 $9.8 -$6.7 NM NA NM NA NM NA -24% NA NA NA -69.1% Average 2.3x 2.3x 20.6x 14.5x 17.2x 16.9x 7% 16% -2% 45% -6.6% Median 1.9x 2.3x 11.8x 9.7x 13.6x 14.5x -1% 8% 8% 55% 3.4%
China (Shenzhen listed)Quihoo 360 601360 CN 30-Sep -23 $1.27 $8,893.9 $5,615.2 $1,277.9 -$32.8 4.3x 3.9x NM 78.9x NM NM 0.5% NM NA NA -2.6% Beijing Kunlun 300418 CN 30-Sep -23 $5.27 $6,408.4 $6,373.8 $687.8 $76.1 9.0x 8.9x 72.5x 35.6x 63.5x 47.9x 7% 1% -51% NM 11.1% 37Games 002555 CN 30-Sep -23 $2.65 $5,870.2 $4,957.7 $2,298.5 $427.9 2.1x 1.8x 11.2x 8.4x 14.4x 8.9x 6% 14% -17% 34% 18.6% Kingnet Network 002517 CN 30-Sep -23 $1.58 $3,356.2 $2,990.1 $538.6 $195.9 5.4x 4.2x 14.5x 10.6x 19.6x 13.2x 11% 30% 4% 41% 36.4% Perfect W orld 002624 CN 30-Sep -23 $1.67 $3,303.4 $3,239.3 $1,117.6 $80.6 2.8x 2.6x 31.6x 15.3x 41.6x 30.2x 9% 9% -29% NM 7.2% Giant Network 002558 CN 30-Sep -23 $1.57 $2,985.8 $2,776.9 $374.5 $93.8 7.2x 5.3x 28.3x 12.4x 17.7x 14.6x 27% 35% -13% NM 25.1% Ourpalm 300315 CN 30-Sep -23 $0.73 $1,984.0 $1,580.6 $133.1 $2.0 11.5x 11.1x NM 30.8x 31.1x 56.5x -22% 4% 94% NA 1.5% Youzu Interactive 002174 CN 30-Sep -23 $1.62 $1,458.1 $1,390.2 $232.7 $4.3 5.8x 4.0x NM 21.1x NM 33.2x -21% 46% -92% NM 1.9% Dalian Zeus 002354 CN 30-Sep -23 $0.78 $1,288.0 $1,221.4 $245.2 -$4.9 4.8x 4.0x NM NM NM NM -6% 22% NA NM -2.0% ZQ Games 300052 CN 30-Sep -23 $2.39 $626.7 $641.1 $33.6 -$3.6 18.5x 15.3x NM NM NM NM -19% 21% NA NM -10.7% Average 7.2x 6.1x 31.6x 26.6x 31.3x 29.2x -1% 20% -15% 37% 8.6% Median 5.6x 4.1x 28.3x 18.2x 25.3x 30.2x 3% 21% -17% 37% 4.5%
Hardware, Platforms, Advertising & ToolsNVIDIA NVDA US 29-Oct-23 $495.22 $1,223,193.4 $1,215,939.4 $44,870.0 $22,161.0 27.1x 13.9x 54.3x 19.5x 65.2x 25.4x 57% 94% 154% 182% 49.4% Dell DELL US 3-Nov -23 $76.50 $54,437.5 $73,701.5 $91,146.0 $7,908.0 0.8x 0.8x 8.9x 7.2x 21.2x 11.4x -13% -1% -13% 29% 8.7% Roblox RBLX US 30-Sep -23 $45.72 $28,517.3 $28,090.9 $2,628.3 -$1,002.6 10.7x 7.4x NM 65.1x NM NM 19% 45% NA 143% -38.1% Hewlett Packard HPE US 31-Oct-23 $16.98 $22,067.7 $32,219.7 $29,135.0 $5,116.0 1.1x 1.1x 5.8x 5.7x 11.0x 8.8x 2% 2% 7% 11% 17.6% Unity U US 30-Sep -23 $40.89 $15,539.0 $17,115.2 $2,029.0 -$364.9 8.4x 7.4x NM 31.5x NM 40.8x 62% 14% NA NM -18.0% Logitech LOGN CH 30-Sep -23 $94.72 $14,850.5 $13,666.6 $4,261.5 $579.2 3.0x 3.2x 20.9x 21.5x 36.8x 30.5x -18% 1% -24% 10% 13.6% Applovin APP US 30-Sep -23 $39.85 $13,381.7 $16,235.6 $3,032.1 $889.0 5.4x 4.3x 18.2x 9.0x NM 28.4x 4% 24% 44% 104% 29.3% ASUS 2357 TW 30-Sep -23 $15.98 $11,867.0 $10,711.3 $15,202.9 $158.4 0.7x 0.6x 46.7x 13.5x 44.6x 16.4x -13% 5% -84% NM 1.0% MSI 2377 TW 30-Sep -23 $6.66 $5,625.4 $4,918.8 $5,425.8 $276.0 0.9x 0.8x 16.4x 12.4x 23.6x 16.3x -10% 15% -45% 37% 5.1% Acer 2353 TW 30-Sep -23 $1.76 $5,269.9 $4,074.1 $7,395.9 $143.4 0.5x 0.5x 23.3x 15.5x 52.8x 28.3x -21% 10% -56% 75% 1.9% Corsair Gaming CRSR US 30-Sep -23 $14.10 $1,452.0 $1,605.0 $1,441.3 $61.6 1.1x 1.0x 19.2x 13.2x NM 19.7x -3% 10% NM 97% 4.3% Flexion Mobile FLEXM GB 30-Sep -23 $0.88 $49.8 $40.2 $83.3 $4.8 0.4x 0.4x 7.8x 5.3x NM 12.1x 15% 22% NA 52% 6% Atari ALATA FR 30-Sep -23 $0.11 $46.6 $71.2 $12.9 -$10.5 5.3x NA NM NA NM NA -8% NA NA NA -81% Popreach INIK CA 30-Sep -23 $0.15 $43.1 $99.9 $161.8 $12.4 0.6x 0.5x 7.4x 4.6x NM NM NA 16% NM 74% 7.7% Bidstack BIDS GB 30-Jun-23 $0.01 $9.1 $6.5 $6.6 -$13.2 1.0x NA NM NA NM NA 35% NA NA NA NM Average 4.5x 3.2x 20.8x 17.2x 36.5x 21.6x 8% 20% -2% 74% 0.5% Median 1.1x 1.0x 18.2x 13.2x 36.8x 19.7x -0.4% 14% -19% 74% 5.4% Source: CapIQ, As of December 31, 2023, in $M except share price, EV/EBITDA and P/E multiples less than 0 and greater than 10 0 are denoted as NM
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23
VanEck Video Game Tech ETF, 32.4% S&P 500, 24.2% Drake Star Gaming Index, 11.5% Wedbush ETFMG Video Game Tech, 6.9%
19
Source: CapIQ, Pitchbook & DSP Research, as of December 31, 2023
Note: Drake Star Gaming Index is a custom index (not a fund) that represents select content focused gaming companies
Jan 1, 2023
-65.0%
-45.0%
-25.0%
-5.0%
15.0%
35.0%
55.0%
75.0%
95.0%
115.0%
Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23
Applovin, 278.4%
Roblox, 60.6%
Take2, 54.6%
Unity, 43%
Netease, 28.3%
S&P 500, 24.2%
Konami, 23.7%
Activision, 23.3%
Krafton, 15.2%
Drake Star Gaming Index, 11.5%
EA, 12%
Capcom, 8.2%
Paradox, 6.2%
Playtika, 2.5%
Sega, -1.3%
Netmarble, -3.8%
Pearl Abyss, -7.6%
CD Projekt, -11.3%
Tencent, -12.1%
Ubisoft, -12.5%
NEXON, -13.3%
Square Enix, -17.4%
Stillfront, -30.5%
Keyword Studios, -39%
Kakao Games, -42.1%
Embracer, -42.2%
Ncsoft, -46.3%
20
Source: CapIQ, Pitchbook & DSP Research, as of December 31, 2023 Jan 1, 2023
330.0%
75.0%
• After a hyperactive COVID period (2020 -22), deal activity gradually shifted back to the pre –
COVID levels in 2023 and we predict M&A activity to steadily increase again in 2024.
• Top buyers will likely be Tencent, Sony, Scopely / Savvy Games, Keywords and Take -Two,
while ByteDance is about to sell its gaming business and Embracer will likely divest some of
its studios. We expect Savvy Games to continue deploying more out of the $38B ear -marked
for gaming M&A and financings this year. With a tightening regulatory environment in China,
we foresee Tencent and other Chinese strategics to continue increasing their investments and
acquisitions in the Western markets.
• While we expect some large ticket sized M&A deals, we forecast a continued uptick in smaller
to mid size M&A deals in 2024. Private equity firms are attracted by the current lower
valuations of listed gaming companies, and we expect several gaming companies being taken
private this year.
• We predict a healthy amount of seed / early -stage financings and a limited amount of growth /
later stage rounds. Hot segments will be AI / tools and AR / VR.
• Entrepreneurs will likely focus on reaching profitability early in the life cycle of a company and
are increasingly attracted to joining a larger company as part of mid -range acquisition vs.
going for a home -run outcome.
• The crypto market saw a strong recovery in 2023 and more recently due to the approval of
multiple BTC ETFs. We are hopeful that the steep appreciation of some of the popular gaming
cryptocurrencies (such as Solana) together with the launch of some fun blockchain games that
attract a broad audience will lead to further expansion of the crypto gaming market in 2024.
• With public gaming market improving in the first half of 2024, we expect to see some of the
IPO ready gaming companies to restart their going public efforts in the second half of the year.
21
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