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Global technology investment bank Drake Star has released its latest Global Gaming Report, analysing the first quarter of 2025. The report is available [here](https://www.drakestar.com/news/global-gaming-report-q1-2025). 
 
Gaming M&A activity rebounded in Q1 2025, with 48 announced deals totalling $4.4 billion in disclosed value. This represents the highest quarterly deal value in nearly two years, and a strong rebound from the dip seen in [Q4 2024](https://www.gamesmarket.global/gamesmarktplus/global-gaming-report-2024-drake-star-gaming-munda-returns-to-growth-in-2024-activity-expected-to-increase-f4428068a6b4f3cbf126da0a500d64db). The biggest deal was Scopely's $3.5 billion [acquisition](https://www.gamesmarket.global/business/pokemon-go-x-monopoly-go-scopely-and-niantic-confirm-partial-acquisition-and-split-of-niantic-8348afca781425276b22ae43a5e538e7) of Niantic's games division (Pokémon GO, Pikmin Bloom, Monster Hunter Now, Campfire and Wayfarer), and it was the largest since Scopely itself was acquired by Savvy Games Group in 2023. Along with the sale of its games business, Niantic will spin off its technology platform into a new company called Niantic Spatial, in which Scopely has invested $50 million.

Tripledot spent $900 million on the acquisition of AppLovin's games division, $400 million in cash and $500 million in equity. AppLovin intends to focus on the advertising market with the sale of its ten game studios. Krafton acquired over 75% of India's Nautilus Mobile (Real Cricket) for $14 million. Krafton considers the Indian market to be a key growth area and has invested heavily in Indian companies.

The quarter also saw the acquisition of a German company. In March, small mobile studio [Lessmore](/company/lessmore), based in Eschelbronn, Baden-Württemberg, was acquired by Miniclip, a subsidiary of Tencent, for an undisclosed sum. Lessmore is known for its hybrid casual games Eatventure, Pocket Chess and We Are Warriors. Miniclip has been very active recently with the acquisitions of Easybrain, FuturLab and SYBO.

In light of the Drake Star Global Gaming Report Q1 2025, Michael Metzger, Managing Partner, provides further insight into gaming M&A activity, the stock market, AAA game pricing and US tariffs ([to the interview](https://www.gamesmarket.global/business/interview-michael-metzger-on-aaa-game-prices-munda-activity-and-us-tariffs-e664891b83e49a66f85e2ba91e478936)).

"Q1 saw 149 private placements totaling $3.5B in disclosed deal value. The largest was a reported $3B investment received by Infinite Reality at a valuation exceeding $12B," says the report. The private investor has not been disclosed. Infinite Reality provides tools for building virtual experiences and plans to use the new funding for acquisitions, partnerships and product launches. "Other notable financings included rounds for Turkish mobile developers Grand Games and Good Job Games. As part of the Scopely transaction, Niantic Spatial secured $50M, while mobile adtech firm Bigabig raised $25M from MobilityWare, and AI game developer BeyondOS closed a $20M round. Later stage financings for gaming studios continues to be challenging."

New gaming funds were also announced, including Tilting Point's UA fund ($150 million), Arcadia Gaming Advisors ($100 million), Skillz ($75 million) and Laton Ventures ($50 million).

"The most active investors over the past year included Bitkraft, Play Ventures, and Andreessen for larger funds and Tirta, The Games Fund, and GEM Capital at the seed stage. Krafton, Tencent, and Samsung led strategic activity, while Animoca, Spartan, and Big Brain were the most active in blockchain gaming. Top acquirers included Savvy/Scopely, Tencent, Playtika, Tripledot, Infinite Reality, and MTG."

On the stock market, Asmodee's successful IPO following its spin-off from Embracer is highlighted. Ubisoft raised $1.25 billion from Tencent, and AMD, GameStop and Logitech announced large debt deals. The Drake Star Gaming Index is up 16.4% since the end of 2023. This index is not a fund, but an equal-weighted index of the 35 largest gaming companies listed on their home stock exchange with a market capitalisation of around $1 billion or more. SEA/Garena, DeNA, Konami, CD Projekt, Tencent, Bandai Namcp, Krafton and Capcom were the top performers, while Playtika, Netmarble, Ncsoft, Kakao Games, Ubisoft, Unity and WeMade lost the most value.

##### 2025 Outlook

Drake Star expects a gradual increase in M&A activity as the year progresses. Key buyers to watch include Savvy / Scopely, Tencent, Krafton, Keywords Studios / EQT, Jagex / CVC, Infinite Reality, Sony and Asmodee.

"Private equity firms are expected to remain very active, with several publicly traded gaming companies potentially being taken private. Key growth segments are expected to include AI, tech platforms, and blockchain. Later stage financings will likely continue to be challenging," says Drake Star.

Regarding the public markets. If things stabilise, Coffee Stain (which will include THQ Nordic) is expected to go public "soon" as part of a spin-out from Embracer. Other games companies, including Discord, are also reported to be preparing for IPOs.

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Drake Star: Gaming M&A Hits Two-Year High in Q1 25 and More Signs of Recovery