Gaming

Ubisoft debt fix leaves valuation quest on pause

28 Mar 2025

The $2 bln French gaming firm’s $1 bln injection from Tencent brings much-needed cash to cut leverage. In return for its massive investment, the Chinese group merely gets a small stake in a new subsidiary. That reflects a generous value for key titles like ‘Assassin’s Creed’.

Torrid AppLovin reignites scorching PAIR trade

13 Feb 2025

Strong results helped the mobile ads outfit add 30% to its valuation. Having already outpaced all tech stocks last year, including Nvidia, the $160 bln company is leading a fiery foursome targeting dominant incumbents. Palantir, IonQ and Reddit are also part of the hot new club.

US sports-betting duo’s growth wager is paying off

23 Jan 2025

FanDuel and DraftKings hold 80% of the market, which could reach $39 bln in size by 2030. They’re harvesting the profits of a historic advertising splurge. Regulation is the main threat, with growing fears about addiction, but there’s nothing clear on the horizon for now.

Toymakers build fun Hong Kong stocks a playground

10 Jan 2025

Bloks shares surged on their debut on overwhelming demand. The $2 bln firm, which specialises in Transformers and other figurines, is tapping into China's collectible toy frenzy led by peer Pop Mart. The duo spotlight a cheap and cheerful part of an otherwise gloomy economy.

New Macau leader deals casino hub a promising hand

12 Dec 2024

Sam Hou Fai takes charge as the gambling enclave struggles to regain its pre-pandemic lustre. He is the first to hail from mainland China and can try to deepen Macau's ties to neighboring Guangdong, including more transport links. Business at Galaxy, SJM and peers could benefit.

At least Tencent can retreat into a virtual world

14 Nov 2024

The Chinese titan's hits like "Dungeon & Fighter Mobile" helped power a one-third rise in adjusted quarterly earnings to $8 bln. Outside of gaming, though, fintech and cloud services barely grew. Consumers and companies are holding back splurging in the real world.

UK tax threat revives gambling stocks’ M&A saga

14 Oct 2024

Entain and Evoke shares fell over 10% on reports of a 3 bln pound tax hike on the sector. After a troubled few years in which it was a target for MGM, debt-laden Entain had looked on the mend. If Britain turns the fiscal screw, smaller players may need to bulk up.

Casino buyout puts new spin on public vs. private

26 Jul 2024

Hedge fund Standard General is offering Bally’s investors a $4.6 bln deal that looks less than generous, but with the option to take risky, semi-liquid over-the-counter stock instead of cash. Unappealing as that is in this case, it shows how the lines between worlds are blurring.

EQT’s $3 bln gaming play hits the right buttons

3 Jul 2024

The Swedish buyout shop looks set to clinch video game services group Keywords. The target’s business of translating games like ‘Clash of Clans’ for a wide range of clients helps insulate it from an industry rut. The chunky 96% premium can also make it a high scorer.

CEO pay is hidden factor in US relisting trend

29 May 2024

Plumbing supplier Ferguson almost doubled its boss’s compensation after moving to New York, while $55 bln CRH is reviewing its remuneration after switching too. It’s not something boards like to talk about. But investors might support US-style pay if it attracts the best talent.

Swedes’ gaming split is far from a next-level fix

22 Apr 2024

Struggling $3 bln Embracer will divide itself into three discrete companies. Leveraging up the group’s board games arm and splitting out hit-and-miss blockbusters and steadier mobile games makes sense. But it’s unlikely to unlock value akin to the Swedish firm’s glory days.

GameStop saga ends. Winner: capital markets

3 Apr 2024

The game retailer cashed in on meme stock mania, revamped management, but failed to reinvent itself. Reddit-fueled investors, eager to fight shortsellers, may just lose their shirts. It would be a costly lesson that, some broken pockets aside, the market was working all along.

Apple’s Epic fail powers up EU tech oversight cred

11 Mar 2024

The $2.6 trln firm quickly reversed its decision to close ‘Fortnite’ maker Epic Games’ developer account. Frowns from the EU, which is going after Big Tech via fresh laws, look to have played a role. The episode is as much a victory for the bloc’s credibility as it is for Epic.

Gaming suitors have a window in which to pounce

13 Feb 2024

After a ropey 2022, the $180 bln sector grew less than 1% last year. Former stars like Ubisoft have been cutting staff, and their shares now look cheap. That gives perennial suitors who think gaming can recover – like Netflix, Disney and Saudi Arabia – a chance to bulk up.

Sony Activision riposte will involve mobile gaming

27 Dec 2023

Microsoft’s $69 bln Activision deal threatens its Japanese rival’s console dominance. But it also establishes a bridgehead for the US firm in the $90 bln mobile gaming space. Recent mobile weakness and an expected return to growth mean 2024 is a good time for Sony to plug in too.

China policy risk returns as stock market grinch

22 Dec 2023

Shares in Tencent and NetEase plunged after surprise new curbs from Beijing on video-game spending and rewards. It smacks of President Xi Jinping’s crackdowns on private tutoring, tech and other sectors – and gives overseas investors another reason to be wary jumping back in.

Capital Calls: Entain/gambling M&A

13 Dec 2023

Concise views on global finance: The CEO of the $5 bln UK-listed betting group has stepped down, making it more vulnerable to a takeover.

Trustbusters throw more bad money at Microsoft

6 Dec 2023

Lina Khan’s FTC failed to stop the tech giant’s $69 bln takeover of video-game developer Activision. Its appeals might salvage a narrow legal victory, but fighting a done deal for possibly another year looks foolish. The agency’s limited resources are better directed elsewhere.

Capital Calls: Goodyear, Target

15 Nov 2023

Concise views on global finance: By offloading assets, the 125-year-old tire maker is succumbing to a similar overhaul as many other iconic US industrial centenarians; the $60 bln retailer has finally taken aim at what it can control – keeping watch over inventory and costs.

Stolen genetic data points to mutating cyber risk

17 Oct 2023

Biotech firm 23andMe may have fallen victim to hackers, joining other sabotage targets Clorox and MGM. Companies can strengthen their systems, but human error plays a role too – with customers and employees as potential vulnerabilities. That adds a new front to an ongoing battle.