NEW YORK—While economic worries have slowed deal making in the media sector, merger and acquisition activity in the hot video game industry continues at a record pace with two billion-dollar deals in June pushing the year's total gross transaction value of M&A to $102.21 billion, according to a new analysis from Kagan, a media research group within S&P Global Market Intelligence.
Neil Barbour, the lead analyst on the new Kagan report noted that large M&A activity in the video game sector in 2022 reflected the industry's status as a revenue powerhouse as well as one of emerging growth opportunities. In addition, cloud gaming has the potential to grow console-style gaming's user base while in-game purchases will play a major role in metaverse development, Kagan reported.
June was the second-largest month for M&A so far in 2022 ($3.40 billion in total), but it paled in comparison to the blockbuster deals announced in January whose value totaled $97.20 billion, Kagan said.
