DDM Games Investment Review

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Q1’s $4.3B Over 219 Investments/M&As Marks a Positive Start to 2024

Despite game industry layoffs and business turmoil, investments and M&As show a return to cautious growth. Compared to Q4 2023, Q1 2024 is a significant decline (-94% in value and +13% in volume compared to Q4’s $70.1B across 194 transactions). However, by excluding Microsoft’s $68.7B acquisition of Activision Blizzard in Q4 as an outlier, Q1 2024’s $4.3B across 219 investments and M&As nearly doubles Q4 2023’s $2.3B in value, indicating a positive start to 2024.

  • Q1 2024 investments totaled $2.2B across 178 investments (+123% in value and +20% in volume compared to Q4’s $1.0B and 149 investments) marking the first quarter to achieve a value over $2.0B in investments since Q3 2022
  • Q1 2024 M&As totaled $2.0B across 41 transactions (-97% in value and -9% in volume over Q4’s $70.0B across 45 transactions); when Microsoft/Activision Blizzard is excluded, Q1 2024 was +65% in value and -7% in volume compared to Q4 2023’s $1.2B across 44 transactions
  • Q1 2024 IPOs totaled $7.2M in total market capitalizations from 1 IPO (-94% in value and -67% in volume compared to Q4’s $112.0M in combined market capitalizations across 3 IPOs)
  • Q1 2024 new fund announcements totaled $13.7B across 28 funds (-23% in value and +4% in volume compared to Q4 2023’s $17.8B across 27 funds) driven by two funds raising over $2.0B; Andreessen Horowitz (A16z) $7.0B and Y Combinator’s $2.0B fund raises accounted for 65% of the capital raised for the quarter

Video Game Investments by Value Q1 2024 ($M)

Video Game M&As by Value Q1 2024 ($M)

Video Game Investments by Segment Value Q1 2024

Video Game M&As by Segment Value Q1 2024

Q1 2024 Vs Q4 2023

Source: DDM Games Investment Review

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Investment and M&A

The DDM GIR is the industry’s longest-running dataset, covering over sixteen years of meticulously tracked video game industry investment and M&A data updated daily. Data points include industry sector, region, investment round, investors and acquirers and many other demographic criteria.

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