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Games industry investment and M&A ticks up in Q3

Drake Star Partners report shows first quarter for investment growth since Q1 2024
Games industry investment and M&A ticks up in Q3
Date Type Companies Involved Key Datapoint
Oct 10, 2025 report Drake Star Partners
  • Aonic led deal activity with its $250m purchase of Prime Insights.
  • Krafton and DoubleDown followed with $96m and $76m acquisitions, respectively.
  • Private financing rebounded with 115 rounds, the first rise since early 2024.
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There were 50 games industry M&A deals in Q3 2025 representing the most activity for a year, according to the latest Drake Star Global Gaming Report.

Deals for the quarter included Aonic's $250 million acquisition of Prime Insights, as well as Krafton’s $96m purchase of Eleventh Hour Games, and DoubleDown’s $76m buyout of WHOW Games.

Q4 looks set to blow this out of the water with the $55 billion acquisition of EA by Saudi Arabia's Pubic Investment Fund, Silver Lake and Affinity Partners - the largest leveraged buyout in history.

Moreover, private financing rebounded in Q3 2025 with 115 rounds to mark the first uptick since Q1 2024. 

Major raises included Lingokids $120m raise, Good Job Games' $60m and Appcharge's $58m as mobile studios dominated the quarter with five of the largest deals.

M&A outlook 

The report found that top games industry investors over the past year included major firms like Bitkraft, Play Ventures, and Griffin Gaming Partners, while early-stage leaders were Impact46, 1AM Gaming, and 1UP Ventures. 

Strategically, Tencent, KRAFTON, and Smilegate led the charge, with Animoca, Spartan, and Arbitrum Gaming Ventures most active in blockchain gaming.

Looking ahead, analysts estimate a wave of mergers and acquisitions through 2026, as major companies take advantage of higher valuations to drive expansion. 

With mobile game funding rebounding in Q3 2025 and continued excitement around AI and tools, momentum across the sector is also expected to build. Coffee Stain Group’s upcoming IPO and a potential 2026 Discord listing further signal a bullish outlook for the industry.

You can access the full report here