Michael Metzger: Takeover of EA "Could Also Inspire Other PE Firms to Pursue Major Acquisitions in the Gaming Sector"

In light of the Drake Star Global Gaming Report Q3 2025, Michael Metzger, Managing Partner, offers additional insights into the EA takeover and its implications for the games industry, investment sectors, growing market segments, and the stock market.

Global technology investment bank Drake Star has released its latest Global Gaming Report Q3 2025 (GamesMarkt reported). According to the report, the third quarter of 2025 was a landmark quarter for gaming mergers and acquisitions (M&A). Activity reached an annual high, driven by EA's $55 billion acquisition. Private financing also picked up for the first time in six quarters, and top Western gaming stocks performed well. We spoke to Michael Metzger, Managing Partner at Drake Star, about the EA takeover and its implications for the games industry, investment sectors, growing market segments and the stock market.

GamesMarkt: What are your thoughts on the takeover of EA by the consortium of Saudi Arabia's PIF, Silver Lake and Affinity Partners? Was this move expected, given Saudi Arabia's ambitions in games, sports, and esports?

Michael Metzger: "I wouldn't say the deal was expected. EA had been the subject of acquisition rumors for years, with potential suitors including Amazon, Comcast, and Disney. Saudi Arabia's PIF already held a 9.9% stake and had earmarked $38B for gaming investments through its Savvy Gaming arm. After acquiring ESL/FaceIt in esports and Scopely (followed by Niantic Games) in mobile, it was anticipated that PIF would pursue a larger deal in the PC and console space. EA is a particularly strong fit given PIF's focus on sports and global entertainment."

GamesMarkt: What impact will the takeover have on the global games industry?

Michael Metzger: "As the largest leveraged buyout in history, the deal reinforces gaming's position as a leading force within the global entertainment industry. It could also inspire other PE firms to pursue major acquisitions in the gaming sector. EA itself has been relatively quiet on M&A in recent years, but PE owners often follow a buy-and-build strategy, using a major platform acquisition as the base for additional bolt-ons. We could therefore see EA becoming more active in deal-making going forward. In parallel, deeper integration between EA Sports titles (FC, Madden, UFC) and Saudi-backed esports assets like ESL and FaceIt seems likely, and a revival of the FIFA partnership would not be surprising."

GamesMarkt: Where do you think most investments in the games industry are currently going? What role do tools and AI play in this?

Michael Metzger: "Over the past year, most VC firms have shifted their focus toward tools and tech, including AI, rather than game studios, and that trend is likely to continue. Still, it was notable that five of the largest VC rounds this quarter went to mobile gaming studios."

GamesMarkt: How would you currently assess the main market segments (i.e. PC, console and mobile)?

Michael Metzger: "One of the fastest-growing segments is the Roblox ecosystem, now attracting more than 110 million daily active users. While free-to-play PC and console titles continue to deliver strong recurring revenue, premium games with live-ops elements are increasingly favored by mid-sized studios. PC remains the primary platform for esports and modding. After two years of slowdown following IDFA changes, mobile gaming is rebounding, and recent rulings permitting independent third-party payment providers are giving the sector an additional boost."

GamesMarkt: Why did Western stocks perform particularly well on the stock market this quarter?

Michael Metzger: "Top performer Roblox is up more than 130% year-to-date, followed by Unity at +77.9% and Everplay at +75.0%. Roblox’s surge has likely been fueled by its strong user and engagement growth, while Unity's rally reflects a successful turnaround under Matt Bromberg, who done a phenomenal job sharpening focus on the company's core segments and rebuilding developer trust."

GamesMarkt: What are your expectations for the fourth quarter and next year?

Michael Metzger: "We expect a gradual increase in both gaming M&A and financing deal over the next year and expect several mega deal and take-privates. We expect Coffee Stain Group to complete its IPO following the spin-off from Embracer by year-end and remain optimistic about the prospects for a strong Discord listing in 2026."

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