Top 10 Tech Trends: Sports & Gaming

Gaming is dominated by China, a $24B market with more mobile gamers than the US population. Cash-rich Chinese companies facing a consolidated market are looking west for growth opportunities, frequently through M&A.

 

Cross-border transactions dot the recent landscape, some unusual. Leyou Technologies acquired London’s Splash Damage and came back for a second bite of our Client, Digital Extremes. Meanwhile, in the largest ever gaming acquisition, Tencent acquired Clash of Clans maker Supercell for $8.5B, at 3.7x revenue.

 

With new Chinese government regulations requiring government preapproval of apps and games to be expect even more cross-border M&A. With slowing domestic growth and this new regulatory environment, Chinese companies will look westward with greater urgency.

 

And while sports tech M&A isn’t being driven by Chinese giants, we are seeing notable dealflow, particularly in fantasy sports, betting, ticketing and online video. Watch for spotlight webcasts on both these sectors later this year.

Posted by , Executive Vice President on 23 August 2016
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