Someone please debunk this rumor
By
Bad_Influence,
Posted on: 2012-10-07 13:58 in CoH and CoV General Discussions
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Um, 80 million is a tad high ... Even 8 million would take a long time to recoup your investment. $500,000 to 2,000,000 is more likely the range of offers received.
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Originally Posted by DarkBlaster_NA
Heard from a few people that NCsoft declined an anonymous offer of 80 million for CoH.
WHY WOULD YOU DECLINE THAT?!?!?!! |
-- Rich
* Thresholds CoH: What to do When
* My Comics Collection
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Given the result of that 50 million...... ><
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Originally Posted by Golden Girl
To help put the "offer" in context, the entire development and marketing budget for Rift was 50 million.
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Virtue Server
Avatar art by Daggerpoint
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Type 2s might well have spent the money to buy the "new cool F2P game" box, even if they didn't pay ongoing subs.
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Originally Posted by Forbin_Project
Since Freedom launched there has only been two types of people playing CoH.
1. Those that actually spent money on the game. 2. Those that didn't spend any money on the game. It's as clear as day that they aren't concerned about the loss of revenue they are going to lose if group one never buys another NCSoft product. As for group two, if they don't care if the paying customers take their money elsewhere, they sure as heck aren't going to lose any sleep if the people that weren't spending money to play NCSoft games continue not spending any money on NCSoft products. |
It's true. This game is NOT rocket surgery. - BillZBubba
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Originally Posted by Johnny_Butane
Why would they decline any offer?
An offer of $50 is $50 more than the IP/game is going to make them just sitting there. The fact is, they probably weren't seriously entertaining any offers. Why would they sell the game/IP to someone else when that would just create competition and potentially take money and customers away from other NCSoft games? The press release that they "exhausted all possibilities" is just lip service. They never intended to take any reasonable offer and they probably demanded something ridiculous knowing nobody would agree to it. And really, with all the games they've shut down, has NC ever sold the IP? I guess nobody ever offers them what NCSoft thinks is fair. Poor NCSoft! They try so hard too. Seriously, with everything that's happened, the rumor could very well be true. I wouldn't rule it out at this point. . |
There was once a TV studio. Made a TV series. It's genesis was some pseudo-hippie type with an idea about a pioneers in outer space. It ran for three seasons and then got cancelled. It was doing ok, nothing spectacular but the scheduling slot was more value than the series was bringing in.
So it died a death. The fans were really sad. They'd loved it and were loyal and the show got constant reruns across all networks and gathered new fans but never quite enough to make serious money.
Then a few years later there was a big Sci-Fi movie came out. Proved to be a huge blockbuster. And the studio that made the TV series thought "We need to cash in on this wave of sci-fi stuff that's coming out. Let's commission a new movie." But one bright exec put his hand up and said "We got one. It's got a track record. It's popular. It's got fans. It just never made quite enough money but we could take that IP and make a movie."
So they did. It was a success. So much so the movie spawned a sequel. And another. And another. And the studio realised it had a blockbuster on its hands. So they created a new, updated TV series. That proved to be even more popular than the three season original and ran for many many more seasons. And there were other TV series spin offs. At least 3 other series. And more movies. They even made a cross over movie featuring the cast of the original series and the new updated series. (It was a dogpile but still made $$$)
It's called Star Trek. You may have heard of it. And it's why you never ever sell an IP you own.
Thelonious Monk
Charming story. I guess it might sound reasonable to a compulsive hoarder. IPs get sold off all the time.
Paragon City Search And Rescue
The Mentor Project
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Originally Posted by Nethergoat
let's see...anonymous source, ridiculous amount of money unsupported by the revenue the game generates, ON THE INTERNET....I'd say you'd already done a fair job of debunking it when you hit 'submit thread'.
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Can you blame me? I'm a desperate man.
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We'll know the exact valuation as soon as the next annual report comes out...
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Originally Posted by Dollhouse
Nope...because it's not "just sitting there." It's being dissolved. That means that whatever value NCSoft assigns to it (and will stand up to tax auditing...more on that in a sec) will make its way onto their balance sheets as a capital loss. This, along with their Q2 losses, can offset the very significant capital gains that they'll see from the GW2 launch, etc.
That valuation? It will without question be higher than any realistic offer they may have received for the CoH IP (low seven figures range at best). Corporations get away with shenanigans like overvaluing non-tangible assets for capital loss purposes all the time. They've probably valued all the Paragon City assets they're dissolving somewhere in the $5-6 million range (speculation on my part, please understand...). Not a chance in hell they received an offer anywhere near that. I suspect you're absolutely right. I doubt they expected to even receive any, at least any that were close to the market value of the IP (to say nothing of the inflated tax valuation). All the furor probably took them by surprise. They've never shown much to make one think they "get" the Western market. But in the end, this is a cold-blooded bottom line decision...and for all that I hate it, I understand it. Half a million or (maybe) a million...or five million or so in tax offsets? No competent executive would fail to choose the latter. |
@Texarkana
@Thexder
1. Those that actually spent money on the game.
2. Those that didn't spend any money on the game.
It's as clear as day that they aren't concerned about the loss of revenue they are going to lose if group one never buys another NCSoft product.
As for group two, if they don't care if the paying customers take their money elsewhere, they sure as heck aren't going to lose any sleep if the people that weren't spending money to play NCSoft games continue not spending any money on NCSoft products.