I'm very very leery about this.
Just because you get an offer, it doesn't necessarily mean you should take it.
Is Jagex in a decline? No.
At the same time, you could argue that their revenues are up, but they still aren't "making" money (translation: Example They've made +1m every year for the last 5 years, but they've spent +1.2m every year on top of it)
But that doesn't necessarily mean that the investor is in a good spot too.
They may have the cash on hand to do something like this, but they may also have large debts/loans out, or they have a history of buying and selling companies after gutting them.
The other detail would be is this company a good synergy fit? (I hate using a buzzword ... )
Jagex is primarily a gaming software company.
They have a long history, with some success. But the 1 title they have had success with is pretty much the only big thing.
Is the company that is looking to buy/invest is it also a software company? is it an up and coming console gaming company that wants to have Jagex help make titles? or are they just a straight up financial investment firm?
Those groups would "make sense".
1 drawback though is when 2 like minded companies (ie: software dev) merge, you have some "redundant" positions get axed.
The nice thing is that the developers working on RS, OSRS, Chronicle, mobile games are effectively working on separate projects, and thus wouldn't see much an issue*****/accounting, and few execs like Mods Pips and Rod however would be more vulnerable.
If it is a conglomerate with 5 different branches, all of which are 'meh' and hardly profitable as is ... then there really isn't much of a reason.
But the bigger concern is that if a company is seriously considering getting inquired, it does mean that their financials aren't "as good" as we think.
For most companies, it means they've peaked and they can't go to the next size on their own.
15-Mar-2016 17:13:27
but i wont say that runescape will die now, maybe it will grow, maybe it will be very good
