Yearly Archives: 2017

The reality of VR/AR M&A

VRAR VC

Despite Facebook’s blockbuster $3 billion Oculus acquisition in 2014, VR/AR has been too early stage for large scale mergers and acquisitions (M&A) so far. But that’s set to change in the next 12 to 18 months, so let’s look at what could drive M&A deals going forward.

Where Digi-Capital’s Augmented/Virtual Reality Report Q1 2017 and deals database tracked $1.5 billion investments in the last 12 months to Q1 2017, there was only $600 million of M&As in the same period. That dynamic of investments outstripping M&As is typical of early stage tech markets, when deal making is all about investment for growth rather than consolidation for dominance or cost.

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Two speed market drove over $30 billion games deals in 2016

Digi-Capital Games Report 2017Last year was a record breaker for games, with Digi-Capital’s Games Report 2017 recording $30.3 billion games deals in 2016. The $28.4 billion of games mergers and acquisitions (M&A) was 77% higher than 2014’s previous record, and $1.9 billion games investment was the second highest ever. After a games deals ice age in 2015, what put a rocket up deal makers last year?

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After mixed year, mobile AR to drive $108 billion VR/AR market by 2021

mobile-ar-photo

“VR will be big, AR will be bigger and take longer.” What sounded revolutionary when we first said it 2 years ago has become accepted wisdom. But now the market has actually launched, we’ve got 12 months of real world performance and major tech players’ strategies emerging. And that’s changed our views on VR/AR growth. A lot. Our new Augmented/Virtual Reality Report 2017 base case is that Mobile AR could become the primary driver of a $108 billion VR/AR market by 2021 (underperform $94 billion, outperform $122 billion) with AR taking the lion’s share of $83 billion and VR $25 billion.

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