Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Amsterdam	
  2015	
  
Alina	
  Soltys	
  
Associate	
  
2	
  
Corum	
  –	
  Sell	
  Side	
  M&A	
  Firm	
  
§  Established	
  in	
  1985.	
  	
  
§  Focused	
  on	
  transac@on...
3	
  
Overview	
  
Gaming	
  M&A	
  Update	
  
Asian	
  Market	
  
Driving	
  Trends	
  
@CorumGroup	
   	
  	
  
4	
  
Overview	
  
Gaming	
  M&A	
  Update	
  
Asian	
  Market	
  
Driving	
  Trends	
  
@CorumGroup	
   	
  	
  
5	
  
Gaming	
  Valua@ons:	
  Public	
  Peer	
  Group	
  
Dec-­‐13	
   Jan-­‐14	
   Feb-­‐14	
   Mar-­‐14	
   Apr-­‐14	
  ...
6
37
22
19 18
14 14 13 12
10 10 9 9 9
Top Strategic Acquirers: 2014
7
37
22
19 18
14 14 13 12
10 10 9 9 9
Top Strategic Acquirers: 2014
M&A	
  drives	
  Strategy	
  
Down	
  from	
  39	
  Tr...
8
37
22
19 18
14 14 13 12
10 10 9 9 9
Top Strategic Acquirers: 2014
9	
  
Top	
  Strategic	
  Gaming	
  Acquirers:	
  2014	
  
10	
  
Oculus:	
  Growth	
  Through	
  M&A	
  
Acquirer:	
  Facebook	
  
Target:	
  Oculus	
  RiQ	
  
Deal	
  Value:	
  $2...
11	
  
0	
  
20	
  
40	
  
60	
  
80	
  
100	
  
120	
  
140	
  
160	
  
$0.0	
  
$5.0	
  
$10.0	
  
$15.0	
  
$20.0	
  
$...
12	
  
Source:	
  Corum	
  
Transac@ons	
  in	
  the	
  Gaming	
  Ecosystem	
  
Deal	
  Volume	
  Highest	
  Since	
  2009...
13	
  
Top	
  Gaming	
  Transac@ons	
  2014	
  
$885M	
  
$527M	
  
$941M	
  
$2.5BN	
  
$3.0BN	
  
$970M	
  
$960M	
  
$2...
14	
  
Overview	
  
Gaming	
  M&A	
  Update	
  
Asian	
  Market	
  
Driving	
  Trends	
  
@CorumGroup	
   	
  	
  
15	
  
Early	
  lead	
  by	
  Asian	
  Firms,	
  	
  
Recent	
  Pickup	
  of	
  US	
  Firms	
  
Source:	
  Corum	
  
Top	
...
16	
  
Chinese	
  Take-­‐Privates	
  
Price	
  Arbitrage.	
  Founder	
  does	
  not	
  believe	
  
shares	
  are	
  adequa...
17	
  
Top Asian Gaming Acquirers
8	
  
4	
   4	
  
3	
   3	
   3	
   3	
  
86%	
  
GROWTH	
  
60%	
  
GROWTH	
  
50%	
  
...
18	
  
BaWle	
  of	
  Chinese	
  Giants	
  :	
  Tencent	
  vs	
  Alibaba	
  
Expanding	
  beyond	
  
eCommerce	
  
Spendin...
19	
  
Ac@vity	
  Since	
  2013	
  for	
  Tencent	
  &	
  Alibaba	
  
	
  	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
 ...
20	
  
73	
  
6.6	
  
March	
   April	
   June	
   August	
   September	
   December	
  
AMOUNT	
  RAISED,	
  $M	
  
IPO	
...
21	
  
Overview	
  
Gaming	
  M&A	
  Update	
  
Asian	
  Market	
  
Driving	
  Trends	
  
@CorumGroup	
   	
  	
  
22	
  
Drama@c	
  Changes	
  in	
  AdTech	
  
One	
  of	
  largest,	
  
most	
  important	
  
mobile	
  
marke@ng	
  
plap...
23	
  
Further	
  Consolida@on	
  in	
  AdTech	
  	
  
24	
  
21%	
  
11%	
  
9%	
  
8%	
  7%	
  
5%	
  
Rest	
  of	
  
Market**	
  
39%	
  
Social	
  Casino	
  Game	
  Market	
...
25	
  
Consolida@on	
  of	
  the	
  Middle	
  Market	
  
Acquirer:	
  Churchill	
  Downs	
  
Target	
  :	
  Big	
  Fish	
 ...
26	
  
Billion	
  Dollar	
  Consolida@on	
  Spree	
  
Acquirer:	
  Aristocrat	
  Technologies	
  	
  
Target:	
  Video	
  ...
27	
  
Games	
  as	
  a	
  Service	
  
Con$nuously	
  delivering	
  value	
  to	
  Gamers	
  
• Players	
  pay	
  as	
  th...
28	
  
Consoles	
  adop@ng	
  F2P	
  
30-­‐40%	
  
DLC	
  Market	
  
Share	
  	
  
Source:	
  SuperData	
  
WORLDWIDE	
  
...
29	
  
eSports	
  becoming	
  mainstream	
  entertainment	
  
6	
  OF	
  TOP	
  10	
  
CHANNELS	
  
ARE	
  GAMES	
  	
  
(...
30	
  
Predic@ons	
  
Mobile	
  Costs	
  leading	
  to	
  
diversified	
  user	
  acquisiVon	
  channels	
  	
  
Licensed	
...
Thank	
  You	
  
www.corumgroup.com	
  
Alina	
  Soltys	
  
For	
  copy	
  of	
  the	
  presenta@on:	
  
alina@corumgroup....
Upcoming SlideShare
Loading in …5
×

Gaming M&A Update as Presented at Casual Connect Amsterdam 2015

1,245 views

Published on

Latest trends and drivers of gaming M&A in 2014. A special review of Asian activity and buyers plus predictions.

Published in: Business
  • Be the first to comment

Gaming M&A Update as Presented at Casual Connect Amsterdam 2015

  1. 1. Amsterdam  2015   Alina  Soltys   Associate  
  2. 2. 2   Corum  –  Sell  Side  M&A  Firm   §  Established  in  1985.     §  Focused  on  transac@ons  in  technology  products  and  services  businesses.   §  Professional  staff  drawn  from  senior  posi@ons  at  technology  companies.     §  300+  M&A  transac@ons.    Over  $7  billion  in  transac@on  value.   §  25+  year  rela@onships  with  global  soNware  companies.   §  Most  extensive  database  in  the  industry  (approx.  $25  million  invested).   §  Integrated  global  opera@ons;  transac@ons  in  21  countries.   §  Educa@onal  Leader,  creator  of  the  world’s  most  aWended  tech  M&A   conference,  sponsor  of  the  World  Financial  Symposiums,  frequent  guest  on   CNBC,  MSNBC  and  other  industry  events.  
  3. 3. 3   Overview   Gaming  M&A  Update   Asian  Market   Driving  Trends   @CorumGroup      
  4. 4. 4   Overview   Gaming  M&A  Update   Asian  Market   Driving  Trends   @CorumGroup      
  5. 5. 5   Gaming  Valua@ons:  Public  Peer  Group   Dec-­‐13   Jan-­‐14   Feb-­‐14   Mar-­‐14   Apr-­‐14   May-­‐14   Jun-­‐14   Jul-­‐14   Aug-­‐14   Sep-­‐14   Oct-­‐14   Nov-­‐14   Dec-­‐14   EV/EBITDA   8.57   7.73   8.04   7.51   7.08   6.84   7.94   7.94   9.16   9.33   9.92   9.63   9.75   EV/S   2.24   2.07   2.14   2.42   2.18   2.18   2.47   2.3   2.58   2.29   2.14   2.26   2.3   0.0x   0.5x   1.0x   1.5x   2.0x   2.5x   3.0x   0.0x   1.0x   2.0x   3.0x   4.0x   5.0x   6.0x   7.0x   8.0x   9.0x   10.0x   PPG  includes  Glu  Mobile,  Gree,  King,  NetEase,  Perfect  World,  Zynga,  plus  others  
  6. 6. 6 37 22 19 18 14 14 13 12 10 10 9 9 9 Top Strategic Acquirers: 2014
  7. 7. 7 37 22 19 18 14 14 13 12 10 10 9 9 9 Top Strategic Acquirers: 2014 M&A  drives  Strategy   Down  from  39  Transac@ons  in  2013  
  8. 8. 8 37 22 19 18 14 14 13 12 10 10 9 9 9 Top Strategic Acquirers: 2014
  9. 9. 9   Top  Strategic  Gaming  Acquirers:  2014  
  10. 10. 10   Oculus:  Growth  Through  M&A   Acquirer:  Facebook   Target:  Oculus  RiQ   Deal  Value:  $2  Billion   Date:  April  2014     Sold  to   Following  the  AcquisiVon   Target: Carbon Design Group Acquirer: Oculus VR Transaction Value: Undisclosed Target: Jenkins Software (RakNet) Acquirer: Oculus VR Transaction Value: Undisclosed Target: Nimble  VR Acquirer: Oculus VR Transaction Value: Undisclosed Target: 13th  Lab  AB   Acquirer: Oculus VR Transaction Value: Undisclosed Sold  to   Sold  to   Sold  to   Sold  to  
  11. 11. 11   0   20   40   60   80   100   120   140   160   $0.0   $5.0   $10.0   $15.0   $20.0   $25.0   2009  H1   2009  H2   2010  H1   2010  H2   2011  H1   2011  H2   2012  H1   2012  H2   2013  H1   2013  H2   2014  H1   2014  H2   Deal  Counts   Dollar  Value  in  Billions   TransacVon  Value  ($B)   Billion  Dollar  +   Total  Deals   Transac@ons  in  the  Gaming  Ecosystem   Sources  include  company  filings  and  releases,  industry  databases  and  Corum  Group.   •  Both  majority  and  minority  deals  included.   •  TransacVons  relaVng  to  the  gaming  ecosystem  were  included,  not  limited  to  gaming  studios.   •  Only  announced  or  available  deal  values  included.  
  12. 12. 12   Source:  Corum   Transac@ons  in  the  Gaming  Ecosystem   Deal  Volume  Highest  Since  2009   2  Record  Seing  Years   Excluded  Billion  $  TransacVons:     •  H1  2014  :  $3.35B   •  H2  2014:    $7.85B   Average  Deal  Size:   5  Year  Growth:  170%  $43m  to  $115m     YoY:  21%        $95m  to  $115m   $0   $20   $40   $60   $80   $100   $120   $140   2009   H1   2009   H2   2010   H1   2010   H2   2011   H1   2011   H2   2012   H1   2012   H2   2013   H1   2013   H2   2014   H1   2014   H2   in  Millions   Average  Deal  Size  Trending     0   20   40   60   80   100   120   140   160   $0.0   $5.0   $10.0   $15.0   $20.0   $25.0   Deal  Counts   $  Value  in   Billions   Reported  Gaming  Transac@ons   TransacVon  Value  ($B)   Billion  Dollar  +   Total  Deals  
  13. 13. 13   Top  Gaming  Transac@ons  2014   $885M   $527M   $941M   $2.5BN   $3.0BN   $970M   $960M   $2.0BN   $1.9BN   $472M  
  14. 14. 14   Overview   Gaming  M&A  Update   Asian  Market   Driving  Trends   @CorumGroup      
  15. 15. 15   Early  lead  by  Asian  Firms,     Recent  Pickup  of  US  Firms   Source:  Corum   Top  9  of  10  Deals   (2013)   Top  4  of  10  Deals   (2014)   Top  7  of  10  Deals   (2012)  
  16. 16. 16   Chinese  Take-­‐Privates   Price  Arbitrage.  Founder  does  not  believe   shares  are  adequately  valued  by  Wall  Street   as  Chinese  gaming  shares  should  be.     $1BN,  January  2015   President  Ji  Xuefeng  said  at  the  end  of   each  quarter,  huge  operaVng  pressure   leads  to  short-­‐sighted  strategy.  Problem   in  Product  Planning.   $3BN,  March  2014   $1.9BN,  January  2014  
  17. 17. 17   Top Asian Gaming Acquirers 8   4   4   3   3   3   3   86%   GROWTH   60%   GROWTH   50%   GROWTH   TransacVons  over  last  2  years   Revenue  Growth  from  2013  to  2014e  
  18. 18. 18   BaWle  of  Chinese  Giants  :  Tencent  vs  Alibaba   Expanding  beyond   eCommerce   Spending  @me  partnering   with  studios  to  become  a   publisher   Data  Source:  CapitalIQ   $300M   $500M   $63M   $120M   $280M  
  19. 19. 19   Ac@vity  Since  2013  for  Tencent  &  Alibaba                             88   $21B   AcquisiVons  &   Investments   Total  Value     Data  Compiled  by  The  Corum  Group  
  20. 20. 20   73   6.6   March   April   June   August   September   December   AMOUNT  RAISED,  $M   IPO  Dominated  by  Asia  
  21. 21. 21   Overview   Gaming  M&A  Update   Asian  Market   Driving  Trends   @CorumGroup      
  22. 22. 22   Drama@c  Changes  in  AdTech   One  of  largest,   most  important   mobile   marke@ng   plaporms   Differen@a@on   with  iTunes   Connect   Analy@cs  &   aWribu@on  tools  Source:  Luma  Partners  
  23. 23. 23   Further  Consolida@on  in  AdTech    
  24. 24. 24   21%   11%   9%   8%  7%   5%   Rest  of   Market**   39%   Social  Casino  Game  Market  Share  -­‐  3Q14   MOBILE   ONLY   SOCIAL   ONLY   Social  and  Real  Money  Casino  Companies   $2.7B    SO C IAL  C ASINO     G A M ING   M A R K E T   MOBILE   SHARE   54%   16%   0.5%   M O B I L E   G R O W T H   Q / Q   F A C E B O O K   G R O W T H   Q / Q   Source:  App  Annie,  Eilers  Research  
  25. 25. 25   Consolida@on  of  the  Middle  Market   Acquirer:  Churchill  Downs   Target  :  Big  Fish   Deal  Value:  $885M   Date:  Nov  2014     Acquirer:  Imperus  Technologies  Corp.   Target  :  Diwip  Ltd.   Deal  Value:  $100M   Deal  Mul@ple:  1.8x  Revenue   Date:  Oct  2014     Acquirer:  Caesars  InteracVve  (PlayVka)   Target  :  Pacific  InteracVve   Deal  Value:  $90M   Date:  Feb  2014     Acquirer:  Bally  Technologies  Inc.   Target  :  Dragonplay  Ltd.   Deal  Value:  $90M   Deal  Mul@ple:  5.1x  EBITDA   Date:  June  2014     Sold  to   Sold  to   Sold  to   Sold  to   Acquirer:  GSN  Games   Target  :  Bash  Gaming   Deal  Value:  $165M   Date:  Feb  2014     Sold  to   Sports  &   Gaming  
  26. 26. 26   Billion  Dollar  Consolida@on  Spree   Acquirer:  Aristocrat  Technologies     Target:  Video  Gaming  Technologies     Deal  Value:  $1.3B   Deal  Mul@ple:  5.5x  Revenue   Date:  July  2014     Sold   to   Acquirer:  GTECH     Target:  IGT   Deal  Value:  $6.4B  (cash  plus  debt)   Deal  Mul@ple:  3.0x  Revenue   Date:  July  2014     Acquirer:  ScienVfic  Games     Target:  Bally  Technologies   Deal  Value:  $3.3B   Deal  Mul@ple:  3.7x  Revenue     Date:  July  2014     Sold   to   Acquirer:  Global  Cash  Access     Target  :  MulVmedia  Games   Deal  Value:  $1.2B   Deal  Mul@ple:  5.5x  Revenue   Date:  Sept  2014     Sold   to   Sold   to  
  27. 27. 27   Games  as  a  Service   Con$nuously  delivering  value  to  Gamers   • Players  pay  as  they  go  &  what  they  use    -­‐  “F2P”  Service  Concept     • StarVng  with  trailer  thru  game  play,  online  presence,  community,  etc.  All  Encompassing   • Strong  analyVcal  soluVons  and  strategies   • Keep  the  users  coming  back  Mone@za@on  is  Key   • Focused  soluVon  providers  helping  every  step  of  the  way  from  product   development  to  a/b  tesVng  to  analyVc  compilaVon    Specializa@on  Economy  
  28. 28. 28   Consoles  adop@ng  F2P   30-­‐40%   DLC  Market   Share     Source:  SuperData   WORLDWIDE   CONSOLE  SPEND   $2.4B   FULL   GAME   MICRO   TRANSACTIONS   $0.8B   $1.6B     “CONSOLE-­‐TAINMENT”   ?  
  29. 29. 29   eSports  becoming  mainstream  entertainment   6  OF  TOP  10   CHANNELS   ARE  GAMES     (music  is  other)   ONLY  37%     of  people  who  watch     GAMING  VIDEOS   ON  YOUTUBE   consider  themselves     “GAMERS”   Source:  IHS  Inc.  May  2014   3.7B     2014   6.7B   2018   Global  eSports   Consump@on  Forecast   [Hours]  
  30. 30. 30   Predic@ons   Mobile  Costs  leading  to   diversified  user  acquisiVon  channels     Licensed  Content   More  DLC  with  internet   connected  Consoles  &  introducVon   of  new  types  and  “Season  Passes”   Crea@on  for  wider  gaming   audience  
  31. 31. Thank  You   www.corumgroup.com   Alina  Soltys   For  copy  of  the  presenta@on:   alina@corumgroup.com  

×