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Drake Star Global Gaming Report Q2 2025: Strong Rebound in Gaming Stocks

 

The Drake Star Gaming Index, consisting of 35 large public gaming companies, rose 28% in the first half of 2025, far outpacing the S&P 500, which only gained 5%. We anticipate a new wave of M&A activity throughout the remainder of 2025 and 2026, as gaming companies aim to capitalize on their strengthened equity valuations to pursue inorganic growth. This quarter also featured one of the largest and most successful exits for gaming VCs with CVC’s significant minority investment in Dream Games as part of a $2.5B deal.

The Drake Star Global Gaming Report Q2 2025 analyzes Gaming and Esports dealmaking in the second quarter of 2025 and outlines what to expect for the rest of 2025 and beyond. 

Download the full report for all the insights and details on key M&A and deal activity below. Highlights include:

  • Public gaming stocks saw a strong rebound in the first half of 2025, with the Drake Star Gaming Index rising 28%, significantly outperforming the S&P 500’s 5% gain. The strongest overall performers were Square Enix, Roblox, and Konami. In Europe, leading stocks included CD Projekt RED, everplay group, and MTG, while in the US markets, Roblox, Corsair, and Take-Two stood out as the top performers.
  • Gaming M&A activity remained relatively stable in Q2’25, with 46 announced deals. The largest transaction was KRAFTON’s $516M acquisition of ADK, a Japanese company specializing in advertising and animation with some mobile game development. Other notable deals included Epic Games acquiring Loci, Apple purchasing RAC7, and PlayVS acquiring Generation Esports and PlayFly College Esports. PC and console gaming tied with blockchain gaming for the most M&A deals after a notable increase in blockchain gaming deal activity this quarter.
  • Q2’25 featured one of the largest and most successful exits for gaming VCs with CVC’s significant minority investment in Dream Games. The deal, comprising both equity and debt, totaled ~$2.5B at a $5B valuation. Overall, the quarter recorded 110 private placements with a combined disclosed deal value of $3B Other notable financings included Tencent’s $80M investment in Arrowhead, Wolves Esports Club raising $28M from Lvfa Group, AI startup Sett securing $27M, Turkish mobile studio Bigger Games completing a $25M Series A, and Hybe IM raising $21M.
  • The most active investors over the past year included Play Ventures, BITKRAFT, and Makers Fund among larger funds, while Goodwater, TIRTA, and 1AM Gaming were the leading seed-stage investors. On the strategic side, Krafton, Tencent, and Samsung drove the most activity, while Animoca, Spartan, and Gam3Girl Ventures were the most active players in blockchain gaming.
  • Take-Two Interactive announced a proposed $1B public stock offering, with an option to sell an additional $150M, while GameStop announced a debt raise of over $2B. Embracer plans to spin off Coffee Stain Group and Discord is in late-stage discussions with banks for a potential IPO.

Outlook

  • Following the strong rebound of public gaming equities in the first half of 2025, we expect a new wave of M&A activity throughout the remainder of 2025 and 2026, as gaming companies look to leverage their higher equity valuations for inorganic growth. Additionally, IPO activity is likely to pick up, supported by the broader market recovery.
  • Private equity participation in the gaming ecosystem is expected to remain very active, with some publicly traded gaming companies potentially being taken private and PE firms taking growth equity positions in large private gaming companies.
  • Key growth segments are expected to include AI and tech platforms. Later stage financings will likely continue to be challenging.

Download the full report below.

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