Quantum Tech Partners has released a financial report covering the nine months of 2021. According to the report, blockchain gaming companies have raised approximately $1.9 billion in investments in the past nine months. Some companies that received investments after September are not included in the total amount. In the last quarter, significant investments were made in the industry. For example, there is an investment of 725 million dollars for Forte alone.
According to the news of VentureBeat, Alina Soltys, co-founder of Quantum Tech Partners, made $15.58 billion in M&A transactions in the game industry in the third quarter of 2021 alone. For the first nine months, M&A transactions totaled $34.36 billion. This value is nearly double the transactions made in 2020. In addition, game startups received an $8.58 billion investment in the third quarter, and the total investment amount reached $25.52 billion.
Embracer Group and its associated subsidiaries have signed up to 16 deals on their own alone. Lars Wingefors, CEO of Embracer Group, said the company plans to acquire 37 more companies next year.
Largest M&A transactions in the third quarter
The first nine months of this year were the period when some records were broken in the industry. In addition to M&A transactions, the number of companies offered to the public and their IPO revenues also jumped. Alina Soltys states that metaverse games will attract more attention after Facebook changes its name to Meta.
Publicly traded gaming companies achieved 4.5 times more revenue overall. The companies’ total cash is currently more than $100 billion. Compared to a year ago, the number of M&A agreements increased by 47.8%.
The key M&A transactions of the third quarter highlighted by the report are as follows:
- 888 Holdings acquired William Hill for approximately $3 billion.
- Netmarble acquired SpinX Games for $2.19 billion.
- Penn National Gaming acquired theScore for $1.6 billion.
- Tencent acquired the Sumo Group for $1.23 billion.
- DraftKings acquired Golden Nugget for $1.56 billion.
In addition to digital games, virtual and real casino games and companies have also seen profitable transactions this year.
Companies have made quite a few acquisitions this year. Regarding the rationale for these transactions, Soltys states:
“The credit, bond, and debt offerings add up to a lot of money over time. They make all of that M&A possible. In the Nordics in particular, the banks and family offices are participating in games in a big way.”
The rapid growth of the gaming industry continues. Blockchain and NFT games have made a name for themselves this year. Today they contribute to the total revenue of the gaming industry, and this is growing day by day.