Valve Corporation is a leading American video game developer and publisher based in Seattle. As a private company, valve does not have publicly traded shares, so investors cannot directly invest in valve. However, there are still a few ways investors could gain exposure to valve’s growth. This article analyzes different approaches to investing in valve and valuates valve’s investment prospects.
Investing in video game industry ETFs for exposure to valve
There are some video game industry exchange-traded funds (ETFs) that have valve as a holding, though usually just a minor component. For example, the VanEck Vectors Video Gaming and eSports ETF (ESPO) has about 1.3% allocation to valve. The ETF aims to track video game and esports related companies. Investing in these gaming ETFs can provide indirect exposure to valve’s growth without the risks associated with a single private company investment.
Valuing valve as an M&A target for technology giants
Though valve is private, large technology giants like Microsoft, Sony, or Tencent could potentially acquire valve to expand into PC gaming market. Valve’s Steam gaming platform, iconic game properties, and loyal user base makes it an attractive M&A target. Based on past gaming acquisitions and valuation comparables, valve could be worth between $7 billion to $12 billion in an acquisition scenario. This provides a benchmark to gauge valve’s business value for investors.
Assessing valve’s growth potential in evolving gaming trends
Valve is expanding into new gaming devices like its Steam Deck portable PC. It’s online Steam store also stands to benefit from gaming trends like the rise of cloud gaming and game streaming. Valve’s deep ties to game developers provides a wide moat against competition. With over 125 million active Steam users, valve has cultivated loyalty and network effects. If valve eventually pursues an IPO or direct listing, these qualities suggest strong future investor interest at attractive valuations.
Though valve stock is not directly tradable, investors could gain exposure through gaming industry ETFs. Valve’s business value also makes it an attractive acquisition target. And valve’s loyal user base, iconic gaming IP, and forward-thinking technology suggest strong prospects if it ever goes public.