Strategic Value in a Shifting Landscape
The gaming industry has transcended its origins as a niche hobby, with IP-rich franchises now recognized as recurring revenue engines capable of anchoring expansive content ecosystems. These ecosystems span downloadable expansions, merchandise, streaming adaptations and virtual concerts, reflecting a broader shift from temporary value creation to enduring, long-term engagement. The rise of transmedia—where franchises extend across games, television, comics and films—has transformed successful gaming IP into a launchpad for cross-platform monetization. Global gaming M&A activity in Q1 2025 reached $4.4 billion across 48 deals, marking the most active quarter since early 2022. With generative AI reducing development costs and intensifying competition, acquirers are prioritizing proven IP over untested concepts to mitigate risk and enhance returns.
Recent Mega Deals: A Focus on Proven IP
A series of high-profile transactions underscores the growing strategic emphasis on IP-driven acquisitions. Scopely’s $3.5 billion acquisition of Niantic’s gaming division, including the Pokémon Go franchise, highlights the value of immersive, location-based experiences with strong user retention and global reach. These properties provide immediate access to engaged audiences and robust engagement loops, driving predictable revenue streams. Similarly, Apollo Global Management’s $6.3 billion purchase of International Game Technology’s (IGT) gaming and digital assets reflects private equity’s increasing confidence in scalable, content-rich platforms that generate consistent cash flows and offer long-term monetization potential through digital infrastructure. Sony’s acquisition of a 2.5% stake in Bandai Namco for approximately $430 million further illustrates this trend, aimed at strengthening Sony’s presence in anime-based gaming content and fostering closer integration between its gaming and streaming divisions.
The Growing Importance of Gaming IP
Successful gaming IP extends beyond mere brand recognition, encompassing pre-existing communities, consistent user revenue and a foundation for scalable growth. Iconic franchises like Call of Duty, Grand Theft Auto and League of Legends have evolved into multifaceted content ecosystems, generating revenue through sequels, live services, in-game transactions and fan-centric events. Compared to the high costs and commercial risks of developing new titles—often exceeding $100 million—acquiring established IP significantly improves return on investment. The advent of generative AI, which shortens development timelines and lowers costs, further amplifies the value of owning adaptable, well-loved franchises. IP ownership enables acquirers to build robust content pipelines, nurture fan loyalty and implement layered monetization strategies through licensing, animation, music and real-world experiences.
The Role of Specialized Advisory in Complex Deals
As deal values escalate and transactions grow increasingly global and complex, specialized advisory firms play a critical role in structuring successful outcomes. Firms like DelMorgan & Co., with deep expertise in cross-border M&A, provide essential valuation insights, particularly for transactions where brand equity and user engagement are primary value drivers. Quantifying the value of gaming IP, especially when tied to digital communities and sophisticated monetization mechanics, is a nuanced challenge that requires a blend of financial acumen and industry-specific knowledge. Such expertise is vital for acquirers aiming to compete in today’s dynamic entertainment economy.
Market Outlook: Convergence and Opportunity
Gaming IP has emerged as a central pillar in the strategies of technology pioneers, entertainment studios and private equity firms shaping the future of media. As the boundaries between gaming, streaming and socializing blur, the convergence of content, community and commerce is accelerating. For investors, this presents a compelling opportunity, but one that demands precision, foresight and expertise to navigate effectively. Companies that secure high-value IP and leverage it across platforms are poised to capture disproportionate value in an increasingly integrated media landscape. The right advisory partner can unlock extraordinary value in a sector where creative assets and financial strategy are more intertwined than ever, positioning acquirers to capitalize on the transformative potential of gaming IP.
About DelMorgan & Co.
With over $300 billion of successful transactions in over 80 countries, DelMorgan‘s Investment Banking professionals have worked on some of the most challenging, most rewarding and highest profile transactions in the U.S. and around the globe. In the upcoming year we expect more high-quality deal execution for more clients and welcome the opportunity to speak with companies interested in potentially selling their businesses or raising capital.
