Company Factors and Their Impact on Post-Acquisition Success in the Video Game Industry

The video game industry is a large, growing industry that has expanded tremendously over the last decade. Mergers and acquisitions (M&A;) have contributed significantly to the growth process of many companies in this industry; however, these complicated activities have always had a substantial amount of volatility in their success. Because of the heavy competition in the video game industry, M&A; has become increasingly important to the success of many larger companies. Numerous studies have investigated the success factors of M&A.; However, many of them have employed qualitative rather than quantitative methods. In order to properly analyze M&A; in the video game industry, we first conducted a literature review of the qualitative papers and identified factors that potentially impact success. We then created a database that included these factors. Subsequently, we were able to perform a statistical analysis of the data and determine which factors are the most statistically significant as well as which classification algorithm yielded the best performance. The data were analyzed using a variety of classification algorithms, and we could effectively classify 72% of the test data by using a logistic regression equation. We found that important positively correlated factors were a previous working relationship and a flagship product. A negatively correlated factor was a multinational presence of the acquired company. We illustrate that the statistically significant factors relate to the acquired company and not the acquiring company. While substantially more research is needed, our results offer a groundwork for further analysis.

Author

• ALI, DANIYAL

Language

• en

Keyword

• Divestiture
• Merger
• Video Game
• Acquisition

Date created

• 2021

Type of Work

• Dissertation

License

• All rights reserved

Rights statement

• In Copyright

GW Unit

• Engineering Management

Degree

• D.Engr.

Advisor

• Kamp, John
• Etemadi, Amir

Committee Member(s)

• Kamp, John
• Adetunji, Tom
• Etemadi, Amir

Persistent URL

•  https://scholarspace.library.gwu.edu/etd/5t34sk49m