Should be an interesting twist in this game's t imeline...
Could be posturing to flaunt its growth or a gesture to her suitors. Either way, I'm sure the game will live on. Could even get better if the right buyer is lined up.
Anyone know if the Mouse has a say? Legally speaking, could there be a clause in the IP contract?
the question is why are they looking at selling?
It's not an easy industry. Assmode is owned by a private investment company now and they probably want out of board games.
EBITDA slightly ahead of my company, and we found a billion+ buyer. They should do fine as theres likely less sector pressure as we have so could attract a higher multiple.
8 minutes ago, Wiredin said:the question is why are they looking at selling?
Because that's what private equity companies do. Acquire, grow, exit, repeat.
BTW highly unlikely to affect x-wing. This is much much much bigger than any of that.
only issue I could see is if a competitor to Disney bought it. Like a company related to Dreamworks.
I saw some speculation that this could be Asmodee buying itself out of the private equity company so they aren't beholden to anyone.
Question, as I’ve heard some conflicting answers: are earnings the same as revenue, profits, or something else?
Let’s pass the hat and buy it!!!
16 minutes ago, Dosiere said:Question, as I’ve heard some conflicting answers: are earnings the same as revenue, profits, or something else?
It usually is EBITDA , so revenues minus expenses other that interest, taxes, depreciation, and amortization.
Taxes varies depending on the profits, so it's a non-issue in evaluating earnings. Interest is a good one for a company that was leveraged (to the hilt?) by their private equity owners, since it may actually be a large ongoing expense that isn't counted in EBITDA. Depreciation and amortization shouldn't be as significant as some other industries since Asmodee doesn't print their own games or own the machinery to do so on a large scale (as far as I know), so it's mostly buildings (if they own any), office stuff (computers, furniture, etc) and the like.
Asmodee asking for a price that would put them at a 17 P/E ratio is not bad, based on Games Workshop being at 15.56 and CMON at 15.75. It's basically signaling that they feel their intrisic value is higher and think they could ask for more for a similar level of revenue. As I've noted in the Krayt thread, I'm surprised their sell price is just a bit over twice Games Workshop's market gap. Based on the number of brands owned by Asmodee, many of which produce a ton of popular game, I would have expected they be worth more.
Board gaming financials are not my thing though, and the current owner may very well be calling the end of the board game bubble and be willing to lose a bit of upside instead of losing a lot.
It’s obvious that as far as FFG is concerned, for now, it’s business as usual. So there shouldnt’ be any consequences in the short run. The bigger question is, if Asmodee gets bought out by another company (the natural name floated is Hasbro), what changes will we see implemented. Consolidation of the various member studios? The cancelation of product lines? No changes at all? Also, how would a new owner affect licensor relations (although, if Hasbro were to be the eventual buyer, Star Wars should be safe as Disney already has a long term relationship with hem). Guess only time will tell.
2 minutes ago, Otakuon said:It’s obvious that as far as FFG is concerned, for now, it’s business as usual. So there shouldnt’ be any consequences in the short run. The bigger question is, if Asmodee gets bought out by another company (the natural name floated is Hasbro), what changes will we see implemented. Consolidation of the various member studios? The cancelation of product lines? No changes at all? Also, how would a new owner affect licensor relations (although, if Hasbro were to be the eventual buyer, Star Wars should be safe as Disney already has a long term relationship with hem). Guess only time will tell.
You're underestimating the capacity of management to be stupid. There's the chance some new executive will look at X-Wing or something and decide that the stuff with great sales is the perfect place to make their mark by changing everything because of course it will do even better.
Edited by Polaritie5 hours ago, Polaritie said:You're underestimating the capacity of management to be stupid. There's the chance some new executive will look at X-Wing or something and decide that the stuff with great sales is the perfect place to make their mark by changing everything because of course it will do even better.
Equity purchases like this will frequently leave management unchanged. They're buying a successful company because it's successful and you come in with something to add, not take away.
If I wanted to guess, and it's a pure guess, Asmodee made their market acquisitions to allow them to better leverage the major IP rights they had (they spammed out AGOT/SW stuff and created crossovers that weren't previously possible, like SW Carcassone etc), and probably addressed and consolidated supply chain stuff for better efficiency. Sell more and sell it at a better margin, its classic private equity.
They've run that multi-year investment cycle and executed their EBITDA growth plans. Now they want to exit, return profits to their investors, then raise funds to pick up the next investment to do it all over again.
The company who is looking to buy will have different criteria. They might be looking long for a company with products they can push into new markets, or they might be looking for somebody with products they can push into virtual space and monetise in new ways. You could get a media company interested because they are acquiring more of the food chain - create IPs in their TV/film arm then control monetisation of those assets into the expanding and lucrative home hobby market.
On 5/11/2018 at 1:02 AM, SOTL said:Equity purchases like this will frequently leave management unchanged. They're buying a successful company because it's successful and you come in with something to add, not take away.
If I wanted to guess, and it's a pure guess, Asmodee made their market acquisitions to allow them to better leverage the major IP rights they had (they spammed out AGOT/SW stuff and created crossovers that weren't previously possible, like SW Carcassone etc), and probably addressed and consolidated supply chain stuff for better efficiency. Sell more and sell it at a better margin, its classic private equity.
They've run that multi-year investment cycle and executed their EBITDA growth plans. Now they want to exit, return profits to their investors, then raise funds to pick up the next investment to do it all over again.
The company who is looking to buy will have different criteria. They might be looking long for a company with products they can push into new markets, or they might be looking for somebody with products they can push into virtual space and monetise in new ways. You could get a media company interested because they are acquiring more of the food chain - create IPs in their TV/film arm then control monetisation of those assets into the expanding and lucrative home hobby market.
I pretty much agree with this but it is also pretty frequent that the new criteria/direction often carves out portions of the management team who don't agree or know how to execute said idea.
For instance let's say a new management team sees the highest profit in Reinforcement packs like Hotshot and Aces, so they create seasonality where their is a new Hotshot and Aces pack once a year and the old packs aren't useable for this years tournaments and events. Then you create pilots that favor under purchased models causing a further purchasing pattern increase.
This article is from 2 years ago, May 2018. Not saying they might not still be shopping, or perhaps even already have deals in the works, but a lot can happen in 2 years.
I shouldn't think Darth Disney would have any input into whether FFG could sell off the SW xwing/legion/armada and other games..