According to Digi-Capital, Asian companies are increasing their investments in Western businesses in the MMO, social and mobile game markets in 2011. Highlights include Perfect World’s $50 million acquisition of Cryptic and Tencent’s $400 million buy out of Riot Games.
“We remain very bullish on online and mobile games growth and investment – now is a fantastic time,” commented Tim Merel, managing director of Digi-Capital. “We are seeing significant appetite from Chinese, Japanese and South Korean games companies to acquire and invest in strong Western online and mobile games companies, but as our Chinese operating partner often reminds us, building the right relationships remains critical.”
“Market innovation continues across the piece (particularly in social-mobile games), with U.S., European and Asian companies developing great businesses built on great games,” commented Merel. “We’re privy to a groundswell of games IPO activity poised to come to market in the next 12-18 months. As people have come to expect, we remain long term bears on the pure console market, despite recent and anticipated hardware launches.
Source: Slide Share
