Valve Software has become to gamers what the Apple (AAPL -1.66%) Store is to TV, movie, and music fans. The privately held company, created in 1996, rose to the top of the heap with its 1998 release of Half-Life and its 2003 unveiling of Steam, a massive online gaming store.
Here, we'll look at Valve's history, its prospects for launching an initial public offering (IPO), possible alternatives to buying Valve stock, and the financial status of the gaming titan.
IPO
Harrington left Valve in 2000 to spend time with his family, but Newell remains president of the company. Under Newell, Valve continued to develop new products, including its Steam online platform in 2003.
Since it's not publicly traded, Valve doesn't have to release detailed financial data. A March 2024 Bloomberg analysis estimated the company's value at $6.9 billion.
When will Valve IPO?
As long as Newell remains in charge of the company, analysts expect Valve to remain privately held "until he is incapable," in the words of one analyst. In other words, don't look for it on the calendar of upcoming IPOs any time soon.
If the notoriously private company does have shares of stock, they're likely in the form of profit-sharing for its employees, with revenue also being spent on research and development.
Stock
How to buy Valve stock
Since it's not a publicly traded company -- or even considering an IPO -- you can't buy stock in Valve. Fortunately for video game investors, there are several publicly traded companies in the industry. Here are three that video game fans might consider.
Electronic Arts
Redwood City, California-based Electronic Arts (EA +0.10%), founded in 1982 by a former Apple employee, has developed some of the most popular games of the last decade. It also operates major studios, including DICE, which was acquired in 2006, and BioWare, acquired the next year.
The video game developer has a market capitalization of $43 billion and posted $1.12 billion in net income on $7.46 billion in revenue for its 2025 year.
Take-Two Interactive Software
New York-based Take-Two Interactive (TTWO -1.81%) is the second-largest publicly traded game developer in the Americas and Europe. It holds two extremely popular labels: Rockstar Games and 2K.
The game company has a market cap of $43.33 billion. It reported a $4.48 billion loss in its fiscal year 2025 on revenue of $5.63 billion. However, Take-Two expects to rebound in its 2026 fiscal year with the release of another GTA game.
Microsoft
Microsoft has made waves with its video game development since launching its Xbox console in 2001. By one measure, Microsoft is currently second on the list of the biggest companies in the world, with a market capitalization of $3.75 trillion. The company reported 2024 net income of $88.1 billion on revenue of $245.1 billion, a 22% increase from the previous year.
You'll need a brokerage account to buy shares of any publicly traded companies. If you still need to open one, these are some of the best-rated brokers and trading platforms. Here's a step-by-step guide to buying stocks.
- Open your brokerage account: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
The bottom line on Valve Software
Video game developers reaped big benefits during the COVID-19 pandemic when millions of people were locked down in homes with little entertainment. The boost from the pandemic has subsided, but if Valve Software ever goes public, it might be a good option for investors seeking to diversify their portfolio.
As always, consider your financial goals and risk tolerance, especially for an IPO stock likely to suffer ups and downs. The video game market can be extremely cyclical, and Valve's investment style may raise concerns among more traditional investors.
