GLOBALGAMINGREPORTQ22025LOSANGELESISANFRANCISCO?NEWYORKILONDONIPARISIMUNICHIBERLINIDUBAIjulianjulian.riedlbauer@michael.metzger@drak**/AnalyticsPowerRangersSALETO*********2*TransactionsexecutedbycurrentDrakeStarPartnersemployeeswhileemployedatotherfirmsDrakeStarSecuritiesLLCisregulatedbyFINRAandisamemberofSIPC.AllsecuritiesintheUK,aretransactedthroughDrakeStarUKLimited(FRN942020)anappointedappointedrepresentativeofRazlinLtd(FRN730805),whichisauthorizedandregulatedbytheFCAQ2DEALACTIVTYINGAMING&ESPORTSANDMARKETOUTLOKR白BL日XKONAMlKRAFTONR白BL日XKONAMlKRAFTONAppleplayvsdreom烏settI—I"GoodwaterGamesiopxsolla46?Publicgamingstockssawastrongreboundinthefirsthalfof2025,withtheDrakeStarGamingIndexrising28%,significantlyoutperformingtheS&P500,s5%gain.ThestrongestoverallperformerswereSquareEnix,Roblox,andKonami.InEurope,leadingstocksincludedCDProjektRED,everplaygroup,andMTG,whileintheUSmarkets,Roblox,Corsair,andTake-Twostoodoutasthetopperformers.46?GamingM&AactivityremainedrelativelystableinQ2,25,with46announceddeals.ThelargesttransactionwasKRAFTON,s$516MacquisitionofADK,aJapanesecompanyspecializinginadvertisingandanimationwithsomemobilegamedevelopment.OthernotabledealsincludedEpicGamesacquiringLoci,ApplepurchasingRAC7,andPlayVSacquiringGenerationEsportsandPlayFlyCollegeEsports.PCandconsolegamingtiedwithblockchaingamingforthemostM&Adealsafteranotableincreaseinblockchaingamingdealactivitythisquarter.?Q2,25featuredoneofthelargestandmostsuccessfulexitsforgamingVCswithCVC,ssignificantminorityinvestmentinDreamGames.Thedeal,comprisingbothequityanddebt,totaled~$2.5Bata$5Bvaluation.Overall,thequarterrecorded110privateplacementswithacombineddiscloseddealvalueof$3B.OthernotablefinancingsincludedTencent,s$80MinvestmentinArrowhead,WolvesEsportsClubraising$28MfromLvfaGroup,AIstartupSettsecuring$27M,TurkishmobilestudioBiggerGamescompletinga$25MSeriesA,andHybeIMraising$21M.$0.6B?ThemostactiveinvestorsoverthepastyearincludedPlayVentures,BITKRAFT,andMakersFundamonglargerfunds,whileGoodwater,TIRTA,and1AMGamingweretheleadingseed-stageinvestors.Onthestrategicside,Krafton,Tencent,andSamsungdrovethemostactivity,whileAnimoca,Spartan,andGam3GirlVentureswerethemostactiveplayersinblockchaingaming.$0.6B$3.5B?Take-TwoInteractiveannouncedaproposed$1Bpublicstockoffering,withanoptiontosellanadditional$150M,whileGameStopannouncedadebtraiseofover$2B.EmbracerplanstospinoffCoffeeStainGroupasanindependentpubliccompanybytheendoftheyearandDiscordisinlate-stagediscussionswithbanksforapotentialIPO.$3.5Boutlook$3.0Boutlook?Followingthestrongreboundofpublicgamingequitiesinthefirsthalfof2025,weexpectanewwaveofM&Aactivitythroughouttheremainderof2025and2026,asgamingcompanieslooktoleveragetheirhigherequityvaluationsforinorganicgrowth.Additionally,IPOactivityislikelytopickup,supportedbythebroadermarketrecovery.?Privateequityparticipationinthegamingecosystemisexpectedtoremainveryactive,withsomepubliclytradedgamingcompaniespotentiallybeingtakenprivateandPEfirmstakinggrowthequitypositionsin?KeygrowthsegmentsareexpectedtoincludeAIandtechplatforms.Laterstagefinancingswilllikelycontinuetobechallenging..dralkestar,conSource:CapIQ,Pitchbook&DSPResearchNote:DrakeStardidnotactasfinancialadvisorontransactionslistedonthispage.Dealcountincludesannouncedand/orclosedM&A,privateplacement,IPOs,SPACs,andpublicfinancingdeals.PublicMarketsincludeIPOs,SPACs,andpublicfinancings.YTDStockReturnCompanyCompanyYTDStockYTDStockReturnCompanyCompanySource:CapIQasofJune30,2025Note:DrakeStarGamingindexisnotafund.Itanequalweightedindexof35publicgamingcompanies(listedonthetableabove).DrakeStarGamingIndicesbyregionandplatformareequallyweightedindicesusingtherelevantDrakeStarGamingIndexconstituents.ThepercentagesprovidedinthelegendareasoftheendofQ22025.TOPCOMPANIESINDRAKESTARGAMINGINDEX1H'25PERFORMANCEBYREGIONANDPLATFORMSPUARCENIX91.3%KONAMlSPUARCENIX91.3%KONAMl49.1%DrakeStarGamingIndex-PC/Console34.6%DrakeStarGamingIndex-Western21.4%AsiaTOP1owesternTOP1oPc/consoleTOP1oMobileTOP1oYTDStockPerformanceYTDStockPerformanceYTDStockPerformanceYTDStockPerformanceCompanyCompanyCompanyCompanyDrakeStarGamingIndex-Mobile22.5%squAREENIX91.3%KONAMlDrakeStarGamingIndex-Asia33.2%5Source:CapIQasofJune5Note:Top10byregionorplatformoutofthe35companiesintheDrakeStarindexbasedon2025YTDperformance.DrakeStarGamingindexisnotafund.Itanequalweightedindexof35publicgamingcompanies(listedonthepreviouspage).DrakeStarGamingIndicesbyregionandplatformareequallyweightedindicesusingtherelevantDrakeStarGamingIndexconstituents.GAMINGKEYHEADLINES:Q22025??????KRAFTONKRAFTONboughtJapaneseadvertisingandanimationcompanyADKfor$516M.TheservicesofferedbyADKincludemobilegamedevelopment.TheacquisitionsignalsaneffortbyKRAFTONtoexpandbeyondgamingintonewformsofmedia,especially??????KRAFTONEpicGamesacquiredLoci,anAIcompanythathasdevelopedcomputervisionmodelsfortagging3DassetswiththegoalofintegratingLoci’stechnologywithinEpic’secosystem.Sony&OrientalPearlJVSonyacquiredtheremaining51%ofthejointventureithadestablishedwithOrientalPearlin2014todistributePlayStationhardwareinSony&OrientalPearlJVAppleAppleboughtRAC7,thedeveloperofthegameSneakySasquatchforApple’sgamingsubscriptionserviceAppleArcade.playvsPlayVS,anamateuresportsplatform,purchasedGenerationEsports,whichhelpsintegrateesportsinschools,andPlayFlyCollegeEsports,playvsxsolladreamXsolla,whichprovidestoolsforgamemonetization,acquiredLudo,ano-codeplatformforenhancingplayerengagementandxsolladream?TurkishmobilegamesdeveloperDreamGamesraised$2.5BthroughthesaleofaminoritystaketoCVCandadebtfinancingledbyBlackstone.ThisdealmarksoneofthemostlucrativeexitsforgamingVCfirmMakersFund,aswellasBaldertonCapital,IndexVenturesandIVP.?Tencentinvested$80Mfora15.75%stakeofSwedishgamedeveloperArrowhead,knownforthemultiplayershooterHelldivers2.Thedealvaluesthestudioatover$500M.烏sett?WolvesEsportsClub,asubsidiaryofFosunGroup,raisedaninvestmentof$28MfromLvfaGroup.Partofthefundswillbeusedintheconstructionofanewarenafortheteam.烏sett?AIstartupSettemergedfromstealthafterraising$27MthroughSeriesAandSeedrounds.?TurkishmobilegamesstudioBiggerGamesraised$25MinaSeriesAroundledbyGoodwaterCapitalwithArcadiaGamingPartners,IndexVentures,andPlayVenturesparticipatingaswell.?GamepublisheranddeveloperHYBEIMraised$21MfromIMMInvestment,ShinhanVentureInvestment,andDaesungPrivateEquity.Gamesiop?GameStopannouncedthepricingofaprivateofferingof$2.25Binconvertibleseniornoteswiththegoalofusingthefundsforgeneralcorporatepurposes,includingGamesiop?Take-TwoInteractiveannouncedinMayaproposedpublicofferingof$1Bofstockwitha30-dayoptionfortheunderwriterstopurchaseanadditional$150Mofstock.Thefundsmaybeusedfordebtrepaymentandacquisitions.?EmbracerannounceditsplantospinoffCoffeeStainGroupintoastandaloneentityanddistributethesharesofthenewcompanyamongEmbracer’sshareholdersandDiscordisinlate-stagediscussionswithbanksforapotentialIPO..DRAKEDRAKESTAR.dralkestar,conSource:CapIQ,Pitchbook&DSPResearchNote:DrakeStardidnotactasfinancialadvisorontransactionslistedonthispageSource:CapIQ,Pitchbook&DSPResearchNote:Voodoo’sacquisitionofBeRealisexcludedfromdealvolumeanddealvalueinQ224.DrakeStardidnotactasfinancialadvisorontransactionslistedonthispageGAMINGM&ATRANSACTIONSQ2202546DEALSAND$579MINANNOUNCEDDEALS#OFDEALSBYREGIONQ2#OFDEALSBYREGIONQ22025Q22025596265962620NorthAmericaEuropeANNOUNCEDM&ADEALSBYQUARTERANNOUNCEDM&ADEALSBYQUARTERGAMINGM&ATRANSACTIONSQ22025?Sonyacquiredtheremaining51%ofthejoint?Sonyacquiredtheremaining51%ofthejointventureithadestablishedwithOrientalPearlin2014todistributePlayStationhardwareinChina,grantingSonyfullcontroloftheentity.?ThroughthejointventurewithOrientalPearl,SonyhadreleasedthePlayStation4andPlayStation5systemsinChina.??KRAFTONacquiredJapaneseadvertisingandanimationcompanyADKfor$516M.TheservicesofferedbyADKincludemobilegamedevelopment.?TheacquisitionsignalsaneffortbyKRAFTONtoexpandbeyondgamingintonewformsofmedia,especiallyanimation.KRAFTON$516M??AppleacquiredRAC7,thedeveloperofthegameSneakySasquatchforApple’sgamingsubscriptionserviceAppleArcade.?TheacquisitionmarksApple’sfirsteveracquisitionofagamingstudio.AppleseestheacquisitionasanopportunitytosupportthegrowthofSneakySasquatchonAppleArcade.?Xsolla,which?Xsolla,whichprovidestoolsforgamemonetization,acquiredLudo,ano-codeplatformforenhancingplayerengagementandretention.?XsollaplanstointegrateLudo’splayerengagementtoolswithitswebshopandotherproductstohelpdevelopersimproveretention,engagement,andmonetization.?EpicGamesacquiredLoci,anAIcompanythathasdevelopedcomputervisionmodelsfortagging3Dassets.?EpicplanstointegrateLoci’scomputervisiontechnologywithinitsproductstoimprovethediscoverabilityof3Dcontentacrossitsecosystemandstreamlineworkflowsforartists.?PlayVS,an?PlayVS,anamateuresportsplatform,purchasedGenerationEsports,whichhelpsintegrateesportsinschools,andPlayFlyCollegeEsports,acollegiateesportsleague.?TheacquisitionexpandsPlayVS’sesportsecosystem,unifyingthousandsofK-12schoolsandhundredsofcollegesunderoneplatform.playvsSource:CapIQ,Pitchbook&DSPResearchNote:DrakeStardidnotactasfinancialadvisorontransactionslistedonthispageSource:CapIQ,Pitchbook&DSPResearchNote:DrakeStardidnotactasfinancialadvisorontransactionslistedonthispageGAMINGPRIVATEPLACEMENTSQ22025110DEALSAND$3.OBINDISCLOSEDPRIVATEPLACEMENTSQ22025:110DEALSQ22025:$3.OBQ22025:110DEALS5699$0.4B$2.6B5699$0.4B$2.6BDEALVALUEBYSEGMENT22326▲824▲$2.6B24PRIVATEPLACEMENTS($B):BYQUARTERGAMINGPRIVATEPLACEMENTS:Q22025TOPPRIVATEPLACEMENTSVALUATION($M)TARGETCOUNTRYDEALVALUE($M)VALUATION($M)TARGETCOUNTRYDEALVALUE($M)TARGETDATESELECTINVESTORSdreom2,500May-25Mobile5,000dreom2,500May-25Mobile5,000Jun-2580Tencent508Jun-2580Tencent508Jun-2528Esports--LvfaJun-2528Esports--烏settMay-2527Platform/Tools--BessemerVenturePartners,F2VentureCapital烏settMay-2527Platform/Tools--MobileJun-2525--GoodwaterCapital,ArcadiaGamingPartnersMobileApr-2521--IMMInvestment,HGInitiativePC/ConsoleMay-25--Bpifrance,GriffinGamingPartnersPlatform/ToolsApr-25--PlayVentures,KalaariCapitalPlatform/ToolsMay-25--EarlybirdVC,SpeedinvestBlockchainApr-25--NOIACapitalSource:CapIQ,Pitchbook&DSPResearchNote:DrakeStardidnotactasfinancialadvisorontransactionslistedonthispageGAMINGPRIVATEPLACEMENTSGAMINGPRIVATEPLACEMENTSQ22025110DEALSAND$3.OBINDISCLOSEDPRIVATEPLACEMENTS?TurkishmobilegamesdeveloperDreamGamesraised$2.5BthroughthesaleofaminoritystaketoCVCandadebtfinancingledbyBlackstone.ThisdealmarksoneofthemostlucrativeexitsforgamingVCfirmMakersFund,aswellasBaldertonCapital,IndexVenturesandIVP.?Thedealvaluesthecompanyatalmost$5Bandprovidesanexitforthecompany’sVCinvestors.dream$2.5BRaised?AIstartupSettemergedfromstealthafterraising$27MthroughSeriesAandSeedroundsfrominvestors,includingBessemerVenturePartnersandF2VentureCapital.?ThecompanyisdevelopinganAIplatformtoproducevideocontentforUAcampaigns.烏sett$27MRaised$8OMRaised?Tencentinvested$80Mfora15.75%stakeofSwedishgamedeveloperArrowhead,knownforthemultiplayershooterHelldivers2.Thedealvaluesthestudioatover$500M.?ArrowheadfounderJohnPilestedtbelievesthatTencent’sinvestmentopensupopportunitiesintheChinesemarket.?TurkishmobilegamesstudioBiggerGamesraised$25MinaSeriesAroundledbyGoodwaterCapitalwithArcadiaGamingPartners,IndexVentures,andPlayVenturesparticipatingaswell.?ThestudioplanstousethefundingtolaunchitsnewestgameKitchenMastersinnewmarkets,suchastheU.S.,andmakeimprovementstothegameitself.$25MRaisedSource:CapIQ,Pitchbook&DSPResearchNote:DrakeStardidnotactasfinancialadvisorontransactionslistedonthispage$28MRaised?WolvesEsportsClub,asubsidiaryofFosunGroupandtheesportsdivisionoftheWolverhamptonWonderersfootballclub,receivedaninvestmentof$28MfromLvfaGroup.?Partofthefundswillbeusedintheconstructionofanewarenathatwillserveastheteam’shomevenueandisexpectedtoopenlaterthisyear.$21MRaised?GamepublisheranddeveloperHYBEIMraised$21MfromIMMInvestment,ShinhanVentureInvestment,andDaesungPrivateEquity.?ThecompanyseekstousethenewfundingtogrowitspresenceinpublishingandIP-basedgames.MOSTACTIVEINVESTORSTOPINVESTORSBYLTMDEALCOUNTSEEDSEEDFOCUSEDGAMINGVCFUNDSVCDEALSSELECTINVESTMENTSLOCATIONGoodwater6B/ddy.ai655444443LARGEVCFUNDS:SERIESAANDBFCUSEDVCDEALSLARGEVCFUNDS:SERIESAANDBFCUSEDVCDEALSSELECTINVESTMENTSLOCATION8654444MeT'AceNeSource:CapIQ,Pitchbook&DSPResearchNote:DrakeStardidnotactasfinancialadvisorontransactionslistedonthispage.Theleaguetablesabovedonotincludeacceleratorinvestments.MOSTACTIVEINVESTORSTOPINVESTORSBYLTMDEALCOUNTBLOCKCHAINBLOCKCHAININVESTORSVCDEALSSELECTINVESTMENTSLOCATION串SPARTAN9PIION7SONZAle666665sferm_5STRATEGlcGAMINGINVESTORSINVESTORDEALSSELECTINVESTMENTSLOCATIONKRAFTON9875544smilegate'32Source:CapIQ,Pitchbook&DSPResearchlistedonthispage.Theleaguetablesabovedonotincludeacceleratorlistedonthispage.Theleaguetablesabovedonotincludeacceleratorinvestments.GAMINGLEAGUETABLES:TOPBUYERSTOP10STRATEGCBUYERSLTMBUYERSBUYERSLEAGUETABLEDISCLOSEDDEALCOMPANY#OFDEALSSELECTDEALS3GamesDivision5111GamesDivision32422VALUE($M)Source:CapIQ,Pitchbook&DSPResearchNote:DrakeStardidnotactasfinancialadvisorontransactionslistedonthispage.Dealvalueonlyincludespubliclydisclosedtransactionvalues.PUBLICMARKETVALUATIONSONLINE/MOBILEGAMEDEVELOPERS&PUBLISHERSCOMPANYNAMELight&WonderNorthAmerica/Europe-PC/ConsoleFocusedTTWOtinyBuildA276040DRAKESTAR.dralkestar,con15Source:CapIQ,AsofJune30,2025,in$Mexceptshareprice.EV/EBITDAandP/Emultipleslessthan0andgreaterthan100aredenotedasNM.Growthratesshowingagreaterthan200%changeorlessthan-200%changearedenotedasNM.PUBLICMARKETVALUATIONSSource:CapIQ,AsofJune30,2025,in$Mexceptshareprice.EV/EBITDAandP/Emultipleslessthan0andgreaterthan100aredenotedasNM.Growthratesshowingagreaterthan200%changeorlessthan-200%changearedenotedasNM.DEVELOPERSINJAPAN/KOREAANDCHINA(SHENZHENLISTED)COMPANYNAMEJapan/KoreaLTMLTMLTMNTMA25996040.9%A251270A036570A462870A263750A293490GungHoOnlineWeMadeEntertainmentA112040A192080A181710A078340A063080A201490A067000A204610PUBLICMARKETVALUATIONSSource:CapIQ,AsofJune30,2025,in$Mexceptshareprice.EV/EBITDAandP/Emultipleslessthan0andgre