Sure but IO can say No just how you say Nordisk wont sell Avalanche so here we are.
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So whh are we talking AAA… when @FeiEX made clear it was indies on the horizon.
Of course he’s most likely talking…
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You’re right.
You’re absoluetly right.
Let us temper our expectations.
It’s the only way.
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Search your feelings you know them to be true.
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One aspect about studios waiting until they’re valued higher, I haven’t seen others mention:
It’s possible taking a payout today to join Microsoft in 2021 if it’s done with stock and then holding until 2024 will produce a better payout than waiting until your company is at top value and starting the payout in 2024.
What’s more likely to have the higher rate of increase and thus profitability between now and 2023/2024?
- Microsoft Stock acquired
- Game Company value
Of course the deals are likely to be done using CASH instead of stock, but that cash can be used and invested however they want. Either reinvested in something with likely profits or could be one hell of a binge weekend.
There’s also so many additional risks for the Game Company over the years than there are being sheltered inside Microsoft. So it’s an educated gamble, even if you have more control over it, you never know what could happen.
It’s opportunity costs and having to weigh act now or wait.
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Difference is, discussions will be between MS and IOI. With Avalanche its between three partys which complicates things
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It’s called money. Either Nordisk wants, or they don’t. Everything is for sale.
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Studios these days are worth a lot. Nordisk hold all the cards in that situation making it hard for MS
The point people are making, regarding any studio owned by another entity, is that there’s no difference from the owners of Nordisk deciding to sell and the owner of an independent studio doing so. Functionally, it’s the same, and in this example Nordisk’s owners/board would be the deciding entity, not Avalanche.
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It’s easier to approach the independent dev as MS can offer all sorts of assurances and incentives to persuade them. With another entity, it comes down to purely money and the former can demand however much they want. Which is a problem for MS as they may not want to pay that price
Having been on both sides of the fence, it’s literally just money either way.
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Like, theoretically speaking, Nordisk ask for billions, are Avalanche worth it?
There is nothing that makes avalanche worth 1B for starters.
But to answer your question No … but its 3 teams so eh still no on my end.
Which is why to me an acquistion of Avalanche is unlikely as Nordisk will want big bucks
There are numerous valuations for reference on how to price Avalanche and we can start at some point below The 250m Insomniac cost.
No one wants to be the next Yahoo, passing up Billions and eventually ending up selling for pennies on the dollars during a firesale. (44.6 versus 4.48)
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I’m doubtful Nordisk accept that that’s if they want to even sell