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Potential Acquisition - Update
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@Velixje0, its an American company currently.
@Kiwi, its more likely that they would buy a Chinese company to do that as there's much less red tape. The amount of money suggests that they want the deal to definitely happen.
So we can assume its to escape the slowing economy of the yuan and put the value somewhere safe for a while.
But that's not to say or claim that Jagex cant work out big for them. The Chinese mobile gamers market is worth around $6b or so, being either the largest or second largest in the world. And Jagex has two games they have just released/will be releasing into the mobile market. Chronicle is going to be multiplatform and Idle adventures is for mobiles.
They just need a small amount of that market to make some serious profits.
@dilbert, running at a loss and letting the company die are not the same thing
@Kiwi, its more likely that they would buy a Chinese company to do that as there's much less red tape. The amount of money suggests that they want the deal to definitely happen.
So we can assume its to escape the slowing economy of the yuan and put the value somewhere safe for a while.
But that's not to say or claim that Jagex cant work out big for them. The Chinese mobile gamers market is worth around $6b or so, being either the largest or second largest in the world. And Jagex has two games they have just released/will be releasing into the mobile market. Chronicle is going to be multiplatform and Idle adventures is for mobiles.
They just need a small amount of that market to make some serious profits.
@dilbert, running at a loss and letting the company die are not the same thing
17-Apr-2016 08:08:26
Tclcis
said
:
@dilbert, running at a loss and letting the company die are not the same thing
Eventually Jagex will die if it continues to lose money under the management of Honda which is already losing money from their mining operations, and will be losing more if they don't get back the interests they will have to spend on all the loans including the new one they are taking out to buy Jagex. But I don't think they will just sit there and watch Jagex to lose money. You can take a look at how other Chinese companies which bought into Western game developers worked on their Western subsidiaries. The likes of Tencent, Perfect World, You*u have already made or announced plans to make their acquisitions meaningful in the East. None of them sat or plan to sit there just to write off losses on their acquisitions for tax purposes.
@dilbert, running at a loss and letting the company die are not the same thing
Eventually Jagex will die if it continues to lose money under the management of Honda which is already losing money from their mining operations, and will be losing more if they don't get back the interests they will have to spend on all the loans including the new one they are taking out to buy Jagex. But I don't think they will just sit there and watch Jagex to lose money. You can take a look at how other Chinese companies which bought into Western game developers worked on their Western subsidiaries. The likes of Tencent, Perfect World, You*u have already made or announced plans to make their acquisitions meaningful in the East. None of them sat or plan to sit there just to write off losses on their acquisitions for tax purposes.
17-Apr-2016 10:12:03
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