Article contributed by Callum Turcan, M&A Writer and Valuation Specialist at Corum Group
Tech M&A activity in the Gaming sector is robust, with 59 deals in the first quarter of 2025, and on pace to match 2024 levels. Gaming is an incredibly popular entertainment option, with the Entertainment Software Association noting that 61% of Americans aged 5 to 90 play video games at least one hour per week, equal to 190.6 million people.
And, in the Asia Pacific region, the gaming market is expected to grow at a 10.9% CAGR from 2024 to 2030, aided by greater access to the internet through smartphones and other devices.
The six trends driving M&A activity in the Gaming sector include mobile gaming, online gambling, AI, game portfolio expansion, esports and blockchain.
Starting with our first trend, mobile gaming. Mobile gaming entertainment is well-liked by casual gamers as it is often free, easy-to-play and requires minimal commitment. Highlighting this trend, Phantom, a mobile games developer, sold a majority 51.4% interest to Neptune in January to support the growth of Neptune’s gaming business.
Moving to our second trend, online gambling. Users appreciate the ability to bet from anywhere at any time. Illustrating this trend, Blok Sports, a sports betting platform, was acquired by Adventure Box Technology in February along with a 51% stake in the fan engagement platform Sparx, a subsidiary of Blok Sports, for $12 million to strengthen its position in the online gambling market.
Pivoting to our third trend, AI. AI in the Gaming sector is being leveraged to support video game development activities by recommending code to programmers to speed up processes. Illustrating this trend, MoonlanderAI, an AI-driven game development platform, was sold to Alpha3D in February to build an agnostic XR user-generated content community.
Shifting to our fourth trend, game portfolio expansion. Buyers are keen to add high-quality titles with large established fan bases. Highlighting this trend, Pipeworks Studios, a developer of console, PC and mobile games, was acquired by Virtuous in January to enhance its capacity to deliver end-to-end solutions from concept to production through post-launch.
Our fifth trend is esports. The interest in esports grows as fans watch their favorite teams and players compete in live events. Showcasing this trend, Fiber Gaming Network, a community-focused esports platform, was bought by WTFast in February to attract and retain subscribers through improved gaming performance.
Lastly, our sixth trend is blockchain. Gaming companies use blockchain technology to enable in-game tokenization and marketplaces while maintaining game quality. The blockchain in gaming market is expected to grow by a CAGR of 68.3% from 2023 to 2030. Illustrating this trend, Parasol, a provider of blockchain integration software for
Tech M&A activity in the Gaming sector is healthy, with strong demand for companies developing innovative titles with large established fan bases. The global video game industry generated approximately $455 billion in revenue in 2024. Buyers are eager to gain exposure to this vast opportunity and the sea of consumer spending that comes with it.
