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Tclcis

Tclcis

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Vending machine releasing an appropriate game into a large mobile based market.

Id say that's the icing on the cake for the deal.

Is that in development? Sounds a bit risky. I really know nothing about this though

Well, the way I see it is; low risk high gain is the smartest move.

So we have Runescape, ye olde faithful. Consistent profits and keeps Jagexs value stable regardless of the outcome of the other ventures.

Then we have Chronicle and Runescape idle adventures. Chronicle is similar to another successful game Hearthstone. There is also plans in the works to make it multiplatform. That is, to work on your tablet and mobile as well.
Because these games haven't been established yet, its a low risk venture for the new company to shape them as they want. Its a well known market in China, so changes made to suit that market would be low risk. And with the size of this particular market, its a very good opportunity.

30-Mar-2016 09:54:18

Team Skull
Aug Member 2008

Team Skull

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I doubt they intend to keep the company forever, as they most likely want to recoup their initial investment at some point, and relocating the entire company to China might make selling the company a bit more difficult later on.

Not saying they are keeping it forever, but to say that this is short-term is folly given the very nature of recessions and bubble bursts (Japan and America were in one for over a decade (America was actually a depression, but a depression is basically just a more severe recession)).

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It seems more logical to leave the company as it is, collect the dividends, and then sell it when the recession is over to get their initial investment back. Once the recession is over, there will no doubt be another boom in which they will want to invest in, and they'll need their $300m to do that.

Not saying that won't happen either, but again: Recession. Typically long term. It likely will not subside any time soon. Meaning for the time being, it's safe to presume that they're currently here for the long haul.

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Dunno, haven't checked, been too busy doing research on things that actually affect my life lately, and I'm heading to bed shortly, but you've got the internet too, look them up, see if they've been made public yet. If you get a hold of them, let me know what you find.

Meh- personally too lazy to dig through financial records to pull up something that may or may not be accurate. "Revenge...is like a rolling stone, which, when a man hath forced up a hill, will return upon him with a greater violence, and break those bones whose sinews gave it motion."- Jeremy Taylor

30-Mar-2016 11:14:11

Team Skull
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Team Skull

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I tend to agree with nexus. If I had to bet on an outcome, it would be this - no change - and for the reasons nexus gives.
Whether the new owners try to set up a parallel team in China is a little more vexed. Wouldn't like to bet on that. Thats a long term thing though.

Why do you think I keep mentioning long term? Everyone always thinks about the immediate, the here and now.

Ignoring the whole Venture Capitalist cycle, IVP has held majority shares for....what? 5 years now? That's more than enough to be considered long term.

It's highly UNLIKELY they'll hold Jagex for less than a year given the current situation in China at this point. Even then, you have to put into consideration that you have to find a buyer willing to buy shares at a price you find reasonable, which also takes time, plus the whole negotiations, yada yada yada...

It's not likely this is short term given the circumstances. "Revenge...is like a rolling stone, which, when a man hath forced up a hill, will return upon him with a greater violence, and break those bones whose sinews gave it motion."- Jeremy Taylor

30-Mar-2016 11:24:14

Team Skull
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Team Skull

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Yeeeeet.....y'all sitting here assuming nothing is going to happen, which directly implies this is short term, which it's not. "Revenge...is like a rolling stone, which, when a man hath forced up a hill, will return upon him with a greater violence, and break those bones whose sinews gave it motion."- Jeremy Taylor

30-Mar-2016 12:59:23

Stoat King

Stoat King

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To clarify: I agree they are most likely to be buying to ameliorate the effects of the slowdown in the Chinese (and global for that matter) economy.
For the same reasons that people traditionally bought gold as a safe haven.

I think it's likely that they see it as an investment that will last for a good few years. Of course that kinda depends - they certainly have options with regard to that.

But I can't see them making any noticeable changes for 12-18 months, if at all. Again, they have options in this regard.

30-Mar-2016 13:31:29

Stoat King

Stoat King

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Yeeeeet.....y'all sitting here assuming nothing is going to happen, which directly implies this is short term, which it's not.

But why does that imply it's short term? The deal looks fine as it is to my mind - rake off plenty of the below-the-line profit year on year, with luck the investment will appreciate.

30-Mar-2016 13:33:24

Team Skull
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Team Skull

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I think it's likely that they see it as an investment that will last for a good few years.

Here's how I see it: A VC firm doesn't normally sell off their investment if they still see reliably healthy profits coming from said investment. The only time a VC firm even begins to think about that is when they're not seeing any more healthy profits from said investment in the foreseeable future. That in and of itself is worrying.

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But I can't see them making any noticeable changes for 12-18 months, if at all. Again, they have options in this regard.

Define "noticeable" :P "Revenge...is like a rolling stone, which, when a man hath forced up a hill, will return upon him with a greater violence, and break those bones whose sinews gave it motion."- Jeremy Taylor

30-Mar-2016 13:38:08

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