Posted July 1, 20206 yr This is a special chat topic! This means that posts can be shorter and more casual here. Posts here are linked with and will on our Discord server.Join our Discord server here: https://www.kh13.com/discord/Or click here if you've already joined: https://discordapp.com/channels/179158453640495104/727986952909095003
May 7, 20224 yr Ehh, when you have a product that's earning you lots of money i see no reason to sell themWould be stupid of them to do itYou are right that they could still sell them, I just would find it stupid of them to ever do it
May 7, 20224 yr Hence why I vaguely said "the right price", which could literally be anything.The question remains; How long would a potential buyer we willing to wait before they've earned back the investment?
May 7, 20224 yr The right price would literally have to be higher than the combined income of the Persona franchise because tbh that’s why Sega has Atlus in the first place.
May 7, 20224 yr Sometim3s the right price is 50 million, sometimes it's 500 Million, sometimes a billion
May 7, 20224 yr Big Conglomerate Inc. buys small developer for 2 billion dollars. Big Conglomerate Inc. makes back that 2 billion on it ten-fold over a period of 10 years. Competing Conglomerate Inc. looks at that and offers 20 billion dollars to buy small developer from them. Thinking they could probably make even more by deploying their own strategies. Big Conglomerate Inc. is happy with that since they've made so much money already anyway, and they're not seeing how they could increase those earnings even further. And Competing Conglomerate obviously isn't gonna share their plans, so they decide to take the deal. This happens way more often than you might realize.
May 7, 20224 yr I would argue it happens at least every 3 or 4 monthsDefinitely several times a fiscal quarter, for sure.
May 7, 20224 yr And like you said while Square isn't the hugest company out there, at least here, that's big news.Not just for FF, KH, or DQ, they're one of the pillars of Japanese game developersAnd I don't know everything about it but I heard Sony really pissed off the Japanese market sometime ago
May 7, 20224 yr For the record. Square Enix acquired Eidos (and Crysital Dynamics) for about 104 million dollars.And now they're selling them for 300 million dollars.Which is in line with my point above.I still think 300 million is a low-ball considering how much the video game market has grown in the past decade, but hey. 3x still ain't bad.
May 7, 20224 yr Imagine having that on your résumé. "I singlehandedly pissed off an entire country with 126 million people."
May 7, 20224 yr So like, what'd he do? Not to get political lol but I'm hella curious- there a cliff notes version?
May 7, 20224 yr I've never understood why companies choose to close down subsidiaries instead of just selling them off on the cheap.
May 7, 20224 yr I figured there's gotta be some tax right off kind of shit to it, right?I don't know a lot so I'm not gonna guess lol
May 7, 20224 yr Yes, they can write off losses, but that write off is only a certain percentage of said loss.Usually, closing down a subsidiary means liquidating its assets. But when factoring in dept that has to be paid off first, those assets usually don't amount to much.
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