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Why would they need to wait that long?
Let's look at jagex's annual profits?
If the investment is 300M, how long do you suppose it would take for that which you are calling 'quarterly profit' to actually reach 300M.
You seem to be suggesting that this company is only wanting to buy jagex to later sell it, and there is NO evidence currently available to support that belief.
Let's be generous here and say jagex nets 1.5M a year in profit. How many years would that be if this new company sits on its' hands and waits for the initial return of the 300M?
Jagex gets about (more than 1.5m) profit each year, but that was split between the investors and so Jagex the company would only make about 1m that was put back into the company for improvements each year.
Also, the company isn't intending on holding it until its made back the sale price in yearly profit. They would only need to do that if the company's value went to $0 after thy bought it.
It can be sold at any time to get some value back, probably not the full 300m. But the excess can be gained through yearly profit by not doing anything.
24-Mar-2016 00:13:41
- Last edited on
24-Mar-2016 00:16:46
by
Tclcis