Korean Acquisitions: 5 Smart Strategies for Buying Back Catalogues and Filling Gaps

Korean Acquisitions and Video Game M&A: Trends to Watch in 2026

At Pocket Gamer Connects London, a panel of prominent investors in the gaming industry shared insights on investment and M&A trends for 2026. The general consensus was cautiously optimistic: while funding remains challenging, merger and acquisition activity is expected to pick up this year. Experts highlighted that Korean acquisitions and strategic buying for back catalogues are becoming a notable trend in the global gaming landscape.

Growing Confidence in Video Game M&A

Panelists, including Alina Soltys of Quantum Tech Partners and Phil Mansell, former CEO of Jagex, noted that large deals, such as the $55 billion EA acquisition last year, often set a precedent for other M&A activity. “Big mega deals trickle down to everybody else,” said Soltys. “It creates confidence in the industry and encourages new investment.”

Although the final quarter of 2025 saw just $500 million in video game M&A, an 89% drop from the previous year, early 2026 data shows higher transaction activity, indicating a gradual recovery in the sector.

• Trends Driving Korean Acquisitions and Strategic Investments
• Soltys highlighted three major trends shaping the market:
• Numerous high-quality studios have quietly thrived, making them attractive acquisition targets.
• Buyer groups are holding substantial capital and seeking growth opportunities.
• The post-COVID valuation gap has normalized, improving deal flow across different game categories and studio sizes.

Korean firms have been particularly active, with publishers like NCSoft and Krafton pursuing acquisitions and strategic publishing deals to expand their portfolios. Shum Singh noted that Korean companies often start with smaller investments and, if successful, move toward larger acquisitions or strategic partnerships.

Content Funding Remains Risk-Averse

Despite optimism in M&A, content-based investments remain conservative. Phil Mansell and Bibbi Wikman emphasized that traditional equity funding for game development is limited. Instead, developers are turning to alternative financing models, including user acquisition financing, project financing, government assistance, and non-dilutive options.

Sikander Chahal of Transcend Fund added that investors now demand demonstrable traction before funding, raising the bar for securing deals. Showing proof of audience engagement or external validation has become essential for early-stage developers seeking investment.

Buying for Back Catalogue and Strategic IP

In the mid-market, especially in Europe, acquisitions are often targeted rather than full studio takeovers. Investors frequently acquire intellectual property or back catalogues rather than entire teams, providing recurring revenue streams without altering creative control. Soltys emphasized that maintaining older titles not only strengthens revenue but also increases future M&A attractiveness.

“Private equity firms looking for games companies don’t see themselves as creative owners necessarily,” she explained. “They are analyzing a recurring revenue base, which makes back catalogues highly valuable.”

AI and Direct-to-Consumer Engagement as Investment Drivers

Panelists agreed that innovation in distribution, user acquisition, and AI technology within games presents new investment opportunities. AI can optimize team management, live operations, and in-game features, increasing efficiency and revenue potential. Direct-to-consumer systems also allow developers to retain control and engage their audience more effectively.

Wikman stressed that even pre-seed projects must demonstrate traction to secure investment. “Show that you have an audience waiting for your game,” she said. “This is critical in a risk-averse industry.”

Optimism for 2026 and Beyond

While the investment climate remains cautious, panelists highlighted positive signs. Chahal noted that interest rates stabilizing could encourage more investors to re-enter the gaming sector. High-profile releases, such as GTA 6, also raise public awareness and confidence in gaming, ultimately benefiting both investment and M&A activity.

In particular, Korean acquisitions continue to influence the global landscape, combining cautious strategy with long-term vision, often starting with publishing deals or back catalogue acquisitions before pursuing full-scale mergers.