Leaving aside my fear that a Chinese company might impose free speech restrictions and other game changes that would be undesirable, this acquisition makes no sense.This company is buying Jagex for 300 mill. That is 6 times it's most recent years losses. Match that with the expected profit from acquiring Jagex and it is still only a fraction of what the Chinese company would need to offset it's yearly loss.
Look, I get it, the current Investors in Jagex see the money, they don't care where it came from or what the balance sheet of the buying company looks like. Problem is, that selling Jagex to a company hemorrhaging so much money so fast with a questionable turnaround time is just asking for Jagex to become an asset to be divided and sold in parts.
At this point If I had the clout, I would pull together players, investors, anyone with deep pockets and try to out bit this company.
Nothing overly good can come from a company losing cash this fast in it's core business.
17-Mar-2016 22:30:32