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Nothing is worth that. Nothing.
for once I'm ahead of the curve, or only just slightly behind it at least.
that despite repeated attempts to explain it to me, i'm still not entirely sure what Minecraft actually does...
how does that make it worth $2.5billion? Is it likely to recoup that in sales, or is it more than they're amalgamating the existing staff and software into other areas of Microsoft's games division?
Microsoft seem to be spending a lot of money recently.
can't remember where I read the workings tho bd
with the investment spread over a number of years. le sigh
then see the app is a fiver and bin it off.
it's market cap is about £56bn / $91bn.
With last year revenues of £33,591m or $14m net profit that puts it on a forward multiple of 6.5 times earnings.
Minecraft generates just $500m in revenue per annum (according to eurogame) assuming a similar net profit to that of big pharma AZN that's just $200k or 12500 years to recover it's investment.
All I can deduce from this is that Minecraft must make a ton of profit, using the 6.5 forward multiple that would be $384m after taxes. Or Microsoft are cash rich and don't know what to do with it.
just cannot be worth $2.5bn, there's some significant goodwill in that price.
Looked like they were going to at one point. They've missed a trick there.
Though. November I think, just in time for christmas
Looks like a turkey to me
Might sell my imaginary tech startup to some gullible twat for millions.
Murder Mile Munchers?
Apple look like they're about to buy the beautiful but barely used Path social network.
Minecraft itself will continue to net them huge amounts of money. Its been out for years and it was still one of the biggest selling games of last month. They will franchise and market the shit out of it. It increases the overall cred of the xbox brand. The company itself has relatively few overheads as far as im aware so its basically a money making machine.
i saw a thing the other day about a modified educational version of the recent Sim City game, so if that's a thing i refuse to believe there's not similar for this.
that's you downloading a map of Scotland and building cities on it when you should be writing essays!
actually it's Collaborative Design Project week
from gobbling up market share from your competitors. Valuatoin isn't just linear/ based on multiples of earnings.
I think the intention is also for MS to leverage the technolliogy in consoles and handhelds, and it's a good bolt on for them to own as oppsed cobtract with/ licence.
they have form for donig with with franchises, I think.
And it's impossible to tell rigjht now whether it's overprivced bnecause nobody knows whether the game has peaked or will continue to grow in popularity. (also don't forget the £££ paid is not just for the game. It's for the company itself that makes the game, so that includes all of those clever Scandinavian developers and contracts and contacts.)
do you have much of an idea about minecraft and the company behind it?
I've not done any specific diligence on this particular company- it will have its own unique assets and liabilities, but most tech/software company acqusitions are broadly the same. you do diligence on the IP, contracts an dpeople and come up with a risk analysis., this is then fed to the numbers people who run it into their finacnial model. If like in this case you have weary founders who want an exit, you can usually get it for a bit of a dicsount. if however you think it will be a helpful bolt on (or you can eliminate du0plicated central costs via redundacnies and make a saving in future years, then you might even pay a premium. and it's that easy but my god I am boring myslef to sleep.
minecrafty is a super crazy edge case in terms of both of the size of company and the product they made - it's not like MS just bought EA or sth. If you do ever have the time and or inclination it is a pretty interesting story / case if you like that kind of thing.
Just seems like making a level on the fucking amiga.