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Jagex is up for sale! :)

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Dilbert2001
Jun Member 2006

Dilbert2001

Posts: 30,311 Sapphire Posts by user Forum Profile RuneMetrics Profile
"LONDON (Reuters) - Carlyle is weighing options for its UK video games maker Jagex, a business which could be valued as high as 1 billion pounds ($1.25 billion), two people familiar with the matter told Reuters.

The U.S. buyout fund is working with advisers at Morgan Stanley and Aream & Co. to explore a sale or a listing of the Cambridge-based studio, which runs the hit fantasy video game RuneScape, the people said.

The process is in the early stages and Carlyle is expected to proceed with an auction process towards the end of the year, the people said.

The sources cautioned a deal is not certain and subject to market conditions, asking not to be identified because the matter is confidential.

Officials from Carlyle declined to comment. Jagex, Morgan Stanley and Aream did not immediately return requests for comment.

Carlyle, which has $376 billion under management, bought Jagex from the U.S. holding firm Macarthur Fortune Holding in January 2021 for a reported $530 million.

Jagex’s annual earnings before interest, tax, depreciation and amortisation (EBITDA) stand at about 60 million pounds and are expected to increase by more than 10% next year, the sources said.

It could fetch up to 15x EBITDA, or between 900 million pounds and 1 billion pounds, in the event of a sale, they added.

Potential buyers are likely to include private equity firms, which could use Jagex as a platform to buy a string of smaller companies within the sector, one source said."


https://www.msn.com/en-us/money/companies/carlyle-weighs-options-for-runescape-creator-jagex-sources/ar-AA1gnLxj

Carlyle Group is seeking 900 million to 1 billion pounds, or more than double what the $530 mil they paid for Jagex 2 years ago. Good for them, I guess...

New owner may use Jagex to buy even more smaller companies and look for future Jagex to be even more diversified with their investments... oh... and more MTX in OSRS and their new games too.

07-Sep-2023 15:32:46 - Last edited on 07-Sep-2023 15:37:24 by Dilbert2001

Dilbert2001
Jun Member 2006

Dilbert2001

Posts: 30,311 Sapphire Posts by user Forum Profile RuneMetrics Profile
"The process is in the early stages and Carlyle is expected to proceed with an auction process towards the end of the year, the people said."


Interesting, Jagex may have a new owner in as soon as 3 months. The changes are going to be very a lot of fun.

When the owner is decided by auction, I can bid $12.5 and win? :P

07-Sep-2023 20:56:02

Miu

Miu

Posts: 16,996 Opal Posts by user Forum Profile RuneMetrics Profile
They can ask for a billion but first they have to find a buyer.

Obviously said buyer wouldn't be a gamer since Jagex seems unable to make successful games. Everything they've put out is immediately put on an excruciatingly painful life support before gracelessly expiring. They'd make more money just *not* publishing or making games and just sitting on their asses with OSRS and RS3.
Don't forget – RuneScape members get TWO free spins a day instead of the usual one!

08-Sep-2023 03:27:42 - Last edited on 08-Sep-2023 03:29:51 by Miu

Dilbert2001
Jun Member 2006

Dilbert2001

Posts: 30,311 Sapphire Posts by user Forum Profile RuneMetrics Profile
The original Jagex doesn't have to make new games, Gamepires and Pipeworks can make new games for the new Jagex. Don't forget they can acquire or partner with even more established developers with quality products already.

"Jagex’s annual earnings before interest, tax, depreciation and amortisation (EBITDA) stand at about 60 million pounds and are expected to increase by more than 10% next year, the sources said.

It could fetch up to 15x EBITDA, or between 900 million pounds and 1 billion pounds, in the event of a sale, they added."

https://www.msn.com/en-us/money/companies/carlyle-weighs-options-for-runescape-creator-jagex-sources/ar-AA1gnLxj

Look for Jagex to announce much improved 2022 financia results later this year, thanks partly to contribution from SCUM and Pipeworks.

Let's say if Jagex is sold at an EBITDA of 12x instead of 15, the price tag will be 800 million pounds instead 1 billion pounds. Reuters among other Wall Street analysts expect it to be sold.

08-Sep-2023 04:24:15

Dilbert2001
Jun Member 2006

Dilbert2001

Posts: 30,311 Sapphire Posts by user Forum Profile RuneMetrics Profile
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The original Jagex doesn't have to make new games, Gamepires and Pipeworks can make new games for the new Jagex.

They haven't made any new games since being purchased by Jagex either. What the hell is Jagex's problem?

Do you know it takes years to make a quality new game. It is not like backporting RS3 quests to the new games and recycling DMM, Leagues or DXP will make them anything new.

When Jagex bought SCUM and such, they acquired SCUM as a turn key new game of their own and start making big new profits.

If it is better for every business to develop new games from scratch, nobody will buy Blizzard, ESO etc and Jagex soon, for tens, if not hundreds of billions of $$$.

08-Sep-2023 04:33:31

Miu

Miu

Posts: 16,996 Opal Posts by user Forum Profile RuneMetrics Profile
Original message details are unavailable.
Original message details are unavailable.
Original message details are unavailable.
The original Jagex doesn't have to make new games, Gamepires and Pipeworks can make new games for the new Jagex.

They haven't made any new games since being purchased by Jagex either. What the hell is Jagex's problem?

Do you know it takes years to make a quality new game. It is not like backporting RS3 quests to the new games and recycling DMM, Leagues or DXP will make them anything new.

When Jagex bought SCUM and such, they acquired SCUM as a turn key new game of their own and start making big new profits.

If it is better for every business to develop new games from scratch, nobody will buy Blizzard, ESO etc and Jagex soon, for tens, if not hundreds of billions of $$$.

This isn't about Blizzard.

The fact of the matter is that Jagex has never put out a successful game from its own studios, or from purchased studios, besides Runescape or OSRS. Ace of Spades *died* after Jagex bought it, when it was fine before. SCUM is still in early access, added DLC, and still hasn't left early access. There's no development, just monetization.

It's like the tale of Midas, except everything Jagex touches turns to shit instead of gold. So again, let me know when they actually put out a decent game. But first they have to actually put out a game, which is unlikely to even happen, given Jagex's track record.
Don't forget – RuneScape members get TWO free spins a day instead of the usual one!

08-Sep-2023 04:38:47 - Last edited on 08-Sep-2023 04:39:13 by Miu

Dilbert2001
Jun Member 2006

Dilbert2001

Posts: 30,311 Sapphire Posts by user Forum Profile RuneMetrics Profile
Original message details are unavailable.
Original message details are unavailable.
Original message details are unavailable.
Original message details are unavailable.
The original Jagex doesn't have to make new games, Gamepires and Pipeworks can make new games for the new Jagex.

They haven't made any new games since being purchased by Jagex either. What the hell is Jagex's problem?

Do you know it takes years to make a quality new game. It is not like backporting RS3 quests to the new games and recycling DMM, Leagues or DXP will make them anything new.

When Jagex bought SCUM and such, they acquired SCUM as a turn key new game of their own and start making big new profits.

If it is better for every business to develop new games from scratch, nobody will buy Blizzard, ESO etc and Jagex soon, for tens, if not hundreds of billions of $$$.

This isn't about Blizzard.

The fact of the matter is that Jagex has never put out a successful game from its own studios, or from purchased studios, besides Runescape or OSRS. Ace of Spades *died* after Jagex bought it, when it was fine before. SCUM is still in early access, added DLC, and still hasn't left early access. There's no development, just monetization.

It's like the tale of Midas, except everything Jagex touches turns to shit instead of gold. So again, let me know when they actually put out a decent game. But first they have to actually put out a game, which is unlikely to even happen, given Jagex's track record.

If you don't think Jagex want to be the next Blizzard which bought up Activision and King, then sold themselves to Microsoft then you obviously have no clue why AAA game developers are so successful and make so much money.

I believe most consumers and Wall Street people know Blizzard didn't create franchise games of COD, Candy Crush etc themselves.

08-Sep-2023 16:00:47

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