Even amid a slowing economy, transactions in the video game sector have continued at a breakneck pace, setting a new record for the number of transactions in the first quarter of 2022, thanks in part to interest in blockchain-based generation and titles, according to game’s Games Investment Review.
“We are suffering from new superlatives for a record quarter,” the DDM report said.
In total, the DDM report tracked 243 investments totaling approximately $3500 million in the quarter, the highest for a first quarter and corresponding to the record number of transactions set in the last quarter of 2021.
Investments, mergers and initial public offerings in the gaming sector have been on the rise for more than a year and a half, driven through an entertainment sector that is expected to soon surpass $200 billion in global revenue, according to NewZoo, and still driven by new elegance. of investors interested in blockchain and cryptocurrency generation programs in the space.
Blockchain-based gaming and generation corporations have generated more than a portion of the investment volume, especially for early investments by non-traditional investors in the gaming industry.
M&A activity is also on the rise, with 4 deals valued at over $1 billion and $7. 9 billion in 84 deals in total. Collectively, investments and M&A transactions totaled $11. 4 billion in the quarter.
Nine of the 10 most sensible investments were made in mobile devices. According to the report, DDM also detected “a clever spring harvest of new studies and many first rounds” among the many deals for the quarter.
However, the largest personal investment of the quarter was $450 million from more than 25 investors who supported the upcoming game from Yuga Labs, author of the bestselling NFT Bored Ape Yacht Club.
Overall, transactions in the blockchain sector generated $1700 million in personal investment, or 48% of the total. This doesn’t come with unusual blockchain-related projects, such as issuing initial coin offerings (ICOs) or public token towers. This is more or less in line with last quarter’s totals for the sector, which are largely focused on project launch cycles.
“What is transparent is that corporations whose gaming projects incorporate game mechanics to win, tokens and/or NFT continue to drive investment,” the report said. “The diverse nature of their stock, token and/or NFT offerings and offerings has replaced the way gaming corporations can increase their investments. “
Initial public offerings, or IPOs, have declined particularly compared to the last quarter, “in what looks similar to pre-COVID grades and is a departure from the last few quarters,” according to DDM. Two small Polish gaming corporations have gone public, while several much larger PSPC-based cars have yet to be implemented in the sector.
The dominance of notable decline since the last quarter was due to the number of IPOs, reflecting a broader cooling in this sector of industry finance, especially as enthusiasm for PSPC-based IPOs has cooled significantly over the past two years.
Despite all those prodigious numbers, the quarter’s totals may have been much higher. The report focuses on Western markets and does not include the dynamic Asian gaming industry, although DDM also has offices in Asia. In addition, the report notes: The DDM report only includes transactions that closed the quarter, rather than those that are announced.
The big deal with Microsoft may still face a regulatory hurdle, especially now that a third Democratic member of the Federal Trade Commission has been approved by the U. S. Senate. USA Take-Two said Monday in pronouncing its quarterly effects that it expects Zynga’s “transformer” deal to be reached on May 23, after shareholders of the two corporations voted later this week. Add in those mega deals and the quarter would look more like a $90 billion season.
DDM also treats mergers involving special target acquisition companies, or PSPCs, differently than other industry observers, counting as the investment price of a transaction only “what was collected in the transaction, not the next valuation of the company. “This is consistent with how we track investment data, where we track the cash collected from the transaction and, separately, its effect on the overall business price of the business.