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A brand new British Film Institute (BFI) report says that from 1993 to 2022, 118 UK M&A transactions had been carried out from worldwide patrons.
USA-based patrons accounted for 49% of the transactions, China made up 15%, and Sweden made up 10%.
The overwhelming majority of abroad firms that bought UK builders had been already working within the video games sector, with 56% of those being publishers. The essential drivers of the M&A exercise had been attributed to bringing video games improvement and IPs in-house.
2020 and 2021 had been highlighted as the largest years for M&A offers at $2 billion and $2.7 billion, respectively. UK game companies equivalent to Codemasters, Sumo Group, and Playdemic had been among the many largest acquisitions.
EA bought Codemasters for $1.2 billion and Playdemic was bought for $1.4 billion. Meanwhile, Tencent acquired Sumo Group in a deal price $1.27 billion on the time.
BFI’s report notes that among the many potential positives for acquistions, game studios profit from getting access to extra capital and the acquirer’s advertising and distribution experience.
However, relating to destructive impacts to the M&A, it mentioned, “Possible negative impacts may include the loss of creative autonomy for UK games development studios, which may be harmful for innovation, and the overseas transfer of profits realized by UK games development studios.”
The BFI collectively commissioned the report by way of its National Lottery-funded Research and Statistics Fund and the Creative Industries Policy and Evidence Centre. The heart is led by Newcastle University with the Royal Society of Arts and funded by the Arts and Humanities Research Council.
The video video games trade consultancy agency Games Investor Consulting carried out the report’s analysis with economics specialists at Oxford Economics.
