International Buyers Dominate UK Gaming M&A Scene with 118 Deals Since 1993

According to a recent report by the British Film Institute (BFI), a total of 118 mergers and acquisitions (M&A) transactions involving UK gaming companies were made by foreign buyers between 1993 and 2022. The majority of these deals, 49%, were made by US-based companies, followed by China at 15%, and Sweden at 10%. The primary motivation behind these acquisitions was to bring game development and intellectual properties in-house, with 56% of the overseas buyers being existing games publishers. The years 2020 and 2021 saw the highest value of M&A deals, totaling $2 billion and $2.7 billion, respectively. Notable acquisitions include Codemasters, purchased by EA for $1.2 billion, Playdemic, acquired for $1.4 billion, and Sumo Group, bought by Tencent for $1.27 billion. The report highlights the potential benefits of these acquisitions, including increased access to capital and expertise in marketing and distribution for the acquired studios. However, it also notes potential drawbacks, such as the loss of creative autonomy for UK game developers and the transfer of profits abroad. The report was jointly commissioned by the BFI's Research and Statistics Fund and the Creative Industries Policy and Evidence Centre, with research conducted by Games Investor Consulting and economics specialists at Oxford Economics.