James Fudge’s Post

It's dangerous to go alone. Take this report!   Through our partnership with InvestGame, we work to provide the gaming sector with legal support, market intelligence, and strategic insights. This month our Senior Counsel, Richard Faichney, authors a special guest section of InvestGame's annual Global Deals Activity Report, 'Striving for Elevation'. The report examines the state of investment in the global games industry for 2023. Richard's analysis (displayed below) looks at the key legal trends impacting deal flow and investment (including rising regulatory scrutiny and the risk/reward balance of generative AI).   Download the full report: https://lnkd.in/djJM8MeG   #games #gamesindustry #gameslawyers #mergersandacquisitions #venturecapital

It's dangerous to go alone. Take this report!   The latest report from InvestGame is out, examining the state of gaming investment in 2023. Well done to Anton Gorodetsky, Grigory Bortnik and Sergei Evdokimov for pulling together another great report. And really honoured to support with my "two cents" as well.   Key takeaways (plus a few extra musings of my own):   📉❗ Deal-making across private investment (-75% YOY) and M&A (-75% YOY) was way down in 2023, in volume and value terms.   💰📉 Late- and early-stage VC (Series A onwards) has slowed. Seed held up better with these deals less dependent on near-term exit opportunities.   📊🤝Although M&A was significantly down in 2023 (excl Microsoft x Activision), there are positive signs this is starting to pick up again as the macroeconomic position improves. Increased challenges for early and growth stage studios raising new financing may also drive M&A exits at more modest valuations. Increasing regulator scrutiny will likely drive more mid- and small-cap deals, with fewer mega-deals being signed.   🛡⚔ Increasing regulation – merger controls, anti-trust lawsuits and new legislation – is impacting the sector, leading to deals taking longer and being harder to complete. Structural aspects of the industry – such as digital app stores – are also under intense scrutiny as potential monopolies. With the ongoing challenges faced by mobile especially, it will be interesting to see if an opening of digital app stores and a (possible??) move away from the classic 30% fee structure may open new growth and innovation.   🤖💡 Generative AI is set to revolutionise game development and costs – this is driving a lot of new investment and makes this one of the few growth areas right now. But while AI may be a game-changer there are also material risks around IP infringement, privacy and job losses. International legal frameworks on AI are not yet established and a lot of investment is on faith the law will develop favourably. Businesses should work closely with their advisers to de-risk their AI strategies as far as possible.   The team at Taylor Wessing is a market-leader in venture and M&A deals, and are experts in new tech, AI and anti-trust issues. DM me if you want to chat about these or anything else gaming!   #vc #mergersandaquisitions #gamingindustry #gaming

As the gaming industry evolves, so does the potential of game analytics. At Swayven Digital, we're not just helping studios track their data; we're transforming raw insights into actionable strategies that drive profitability and engagement. 🎮💡 For me, knowledge is the key to unlocking future success. By leveraging advanced analytics, studios can uncover player behavior patterns, optimise game features, and predict retention rates—paving the way for a more innovative and profitable future. Let’s continue to ask why and dig deeper into the data that drives sustainable game success. If your studio isn’t making decisions backed by data, it’s missing out on its greatest competitive advantage. #GameAnalytics #DataMastery #Innovation #GamingIndustry #SwayvenDigital

Keywords Studios PLC (AIM:KWS, OTC:KYYWF), a leading service provider to the global #videogame industry, has continued its trajectory of steady growth, according to recent reports by Stifel and Panmure Gordon. Despite concerns over a weak pipeline for AAA titles and potential disruptions from artificial intelligence (AI) technologies, the company has reassured investors with its latest financial results and strategic initiatives. Stifel says #AI will help, not hinder #Keywords. Stifel has affirmed its ‘buy' rating on Keywords Studios, citing the company's full-year results which aligned with the January 25 trading update. The firm highlighted a 13% year-over-year growth in revenue to €780 million, including a four percentage point headwind from foreign exchange fluctuations. Notably, the underlying organic growth, adjusted for FX and impacts from US strikes, was reported at 9%.  More at #Proactive #ProactiveInvestors http://ow.ly/JpKI105lX6f #AIM #OTC #KWS #KYYWF

An interesting acquisition came to my attention today, that took the gaming scene by surprise: Redhook Studio (the developers of Darkest Dungeon, a very popular game) has been acquired by Behaviour Interactive (the makers of Dead by Daylight). What does it mean for the gaming industry? Hard to tell. The "data" shows that Behaviour Interactive closed some other studio the bought a while ago due to risk assessment reasons and their games are also pretty heavy on the micro-transaction side. Usually when a company buys another, it is one of these three reasons: 1. Acquihire - they are basically buying the teams behind the company they bought, because they need the talent and people who are already integrated in teams and have synergies. 2. To kill them off - usually when they buy competition out. 3. Strategic buy - to integrate into their core business, because they want the intellectual property and the products of the bought company. I think this acquisition is a strategic one. Remains to be seen how this will impact Darkest Dungeon 1 and 2, and if they suddenly receive skins and season passes.

Game publishers and investors, we're looking for partners! If you're into fast-paced action and teamwork, you'll love this. Doom meets Hades meets Helldivers! Interested? Contact me... [email protected] #GamePublishing #FundingForGames #IndieGameDev #GamingIndustry #GameInvestment #GameDevelopment #GamePitching

🚀 What if you could take early playtest data to land a huge raise - backing a great game with an ironclad forecast... and a clear picture of how to get there? That's what Kohort did for a gaming studio - helping them raise $20M+. Our client, a mobile gaming studio based in the USA, needed to present a compelling forecast of the potential of their latest title to investors. With only six weeks (!) of playtest data initially, predicting the game’s potential to scale and its ability to generate significant revenue - through planned features and monetisation strategies - would be a substantial challenge. Enter Kohort - building up from modeling every individual segment of player cohorts, we were able to rapidly create a picture of a launch into a varied market with numerous influences, both internal and external. We equally sense-checked CPI projections and how they might fluctuate, and visualized what the future might look like - a key to convincing investors in light of tricky markets. With our constant collaboration, the studio leads could confidently speak to the impacts of risks and opportunities, provide clear forecasts and what would be needed to reach any upside scenario or safeguard from downturn cases, and together build a map for growth, actionable day-to-day. "With Kohort’s guidance, we effectively managed risks and refined our strategies, which was vital in convincing investors to contribute towards our studio's growth." ⭐ All in all; arming them to go into their Series A with confidence and prepared to execute on the opportunity - to the tune of $20M+ invested to go after a vast player market. Read the case study here - and ping me if you want to hear more at #Gamescom! https://lnkd.in/enJU9t8q #seriesA #mobilegaming #mobilegames #gamesindustry #fundraise #investment #gamesinvesting #gamingstudio #softlaunch #datatodollars #casestudy

This morning the London-listed video games developer Keywords Studios announced that it's received a £2 billion approach from the Swedish private equity firm EQT Group. The proposal of 2,550p per share gives a substantial 73.5% premium over Keywords’ undisturbed share price, above the three recent comparable deals (see below). What chance it might prompt a rival bid? Given the high level of competitive activity in the UK market this year, it's a possibility worth considering. Notably, in 2020, the UK-listed video game studio Codemasters received competing bids - from Take-Two and EA. While EQT's offer is strong, an industry bidder might be able to unlock more value from Keywords Studios than a financial buyer, potentially justifying a higher bid. #londonstockexchange #manda #mergersandacquisitions

🚨 Kaedim3d.com is HIRING 🚨 Send resumes to [email protected] Also: let's take a close look at next week & other platforms?⭐ The world's best game studios ship 7x faster with Kaedim3d.com - try it today to turn sketches into game assets in minutes #gdc #gamedev #gdc2024 #GameDevStudio #news #GamingIndustry #IndieGames #GameDevCommunity

Happy to share my thoughts on the Video Games Industry with the Financial Times. There is a lot of private equity interest building in the industry. The proposed takeout of Keywords by EQT and the recent acquisition of Jagex by CVC\Haveli provides very clear evidence of this. Game studios are managing their cost bases globally and balance sheets are beginning to get into good shape after a few slower growth Years. The sector remains very well positioned as a core function of consumer entertainment spend and a growing player base globally and private equity clearly recognises this. #videogames #growingplayerbase #privateequity #mergersandacquisitions