Register to get free articles
Want unlimited access? View Plans
Already have an account? Sign in
Mergers and acquisitions deals for UK video game makers hit £1.9bn in 2021, a 63% increase on the £1.2bn in 2020, according to research from accountancy and business advisory firm BDO.
A total of 14 takeovers of UK video games developers took place in 2021, compared to nine in 2020 and just six in 2019.
BDO said that acquisition activity has been “boosted by growth in the industry since the start of the pandemic”, with lockdown “boosting gaming as a social activity”.
BDO said that video game companies have “improved their ability to produce predictable long-term revenues as once a hit game has been released, it can quickly be turned into a series”.
Tony Spillett, head of the technology and media industry group at BDO, said: “Video games are the content that almost all media companies are looking to snap up at the moment. Regardless of the success of tech companies in building the metaverse, this trend still has some way to go.
“Many small development houses need only a little external investment in order to grow into big industry players. An innovative but small production house infused with capital and resources can rapidly turn into a high value business.”
