about 2 years ago • 1 min
Almost $84 billion of takeover deals for video games firms have been announced so far this year, putting 2022 on course to smash all prior records – and helping put a floor on prices for a sector that’s struggling in the post-pandemic recovery.
That $84 billion total doesn’t even include Sony’s announcement on Monday that it’ll buy Bungie, the maker of the Destiny and Halo gaming franchises, for $3.6 billion. Although it does include Microsoft’s giant $69 billion purchase of Activision Blizzard, announced on January 18th.
Gaming stocks got a boost in 2020 as the pandemic forced people to spend more time at home – although they’ve since been slipping. The VanEck Video Gaming and eSports exchange traded fund (ticker: ESPO) surged 84% in 2020, followed by a 5% decline in 2021, and a further 6% drop so far in 2022.
The current boom in corporate M&A suggests that senior managers in the gaming industry believe the worst of the sector’s share price weakness is behind it – potentially staving off further declines for now.
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