Investing into game companies is really taking investors into a whole new world. Last year, Epic games managed to more than double the record for previous gaming investments in 2017. Fortnite’s developer saw a single investment of $1.25 billion last year.
Digi-Capital’s report shows the outlook on gaming investments last year.
The figure adds up to the staggering $5.7 billion in 2018 which is more than double of the gaming investments from 2017. Epic Games rides the wave of success from the most popular game in the world, Fortnite. The company takes first place with the $1.25 billion from investors. This is not only the largest non-IPO gaming investment. It’s actually the second-largest amount raised by a gaming company, ever.
Back in 2017 Netmarble Games managed to raise $2.3 billion for its IPO. It was also South Korea’s second largest public listing in history.
Gaming Investments are bound to grow
Digi-Capital’s statistics further reveal that over 11 companies managed to raise more than $100 million. Mobile games, gaming technology and streaming were most invested in. After Fortnite, the most featured game in investments is League of Legends. These games are also pivotal to the rapidly developing eSports industry.
The Chinese gaming giant Tencent backed Epic Games, Douyu, Shanda Games and Huya. Additionally, Tencent owns 40% of Epic Games, 25% of NetMarble and owns additional stakes in Tesla, Snap and Activision Blizzard.
Despite all that, the company still cannot earn revenue from Fortnite back in mainland China. The Chinese government is slowly turning up the pace of game licenses again, but Tencent still hasn’t earned its own. Needless to say, China is the biggest gaming country in the world.
Game company mergers and acquisitions also made a total of just over $22 billion back in 2018. The main figure in the equation is Tencent as it acquired a stake worth over $2 billion in Ubisoft via its Vivendi deal.
This rapidly growing industry is inspiring investment like no other. Over 2.5 billion gamers and undeniable successes like Fortnite are welcoming all investors. Apple has also recognized the potential of the gaming industry and is about to create its own gaming subscription service.
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