this post was submitted on 16 Feb 2024
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Interesting, did not know that.
This is great but my fear is that one day he will go public and not share the profits with the employees. I worked at a company like that. Said they would never sell until they did for a record amount that they didn't really share with the employees.
The US needs more mutual companies in general but it could work for a gaming company too.
https://en.m.wikipedia.org/wiki/Mutual_organization
Few people do because Larian keeps lying about it. Part of me understands you don‘t go around telling people a Chinese government asset has big money in your company, given the ongoing genocide and all (speaking of toxic work environment eh) but it‘s publicly accessible information anyway. They‘ve been so consistently dishonest about it that I can‘t take them all that serious about anything anymore. Because alternatively to lying they could just… shut up and keep making great games. They don‘t need that sugar coating.
Did you not read the article?
Tencent own preference stock. They could sell their stock, which could potentially harm the company, but they hold no voting rights and carry no decision making power.
I am not a fan of China, nor Tencent, but spewing bile without understanding the context does NOT help this discourse.
Can't see how it would harm the company. Stocks and shares are just a way to raise money in a company. I'll sell you x% for $yk and own that amount now.
Even with normal shares 30% is a minority stake especially if a single entity owns the other 70% (ie. You can express your opinion but I outvote you every time). Unless Larian are planning to raise additional funds by selling equity and need the stock price to remain high for that reason, Tencent are free to sell their portion without any impact to Larian. (Heck a drop might even let Larian buy itself back)
If Tencent sell its shares, it would make the share price plummet, which will make it harder for the studio to get money by selling new shares.
They're not publicly traded, and the only shares are the ones that Tencent owns. The shares are worth whatever someone buys them for. The price doesn't fluctuate because there's no market with which they are traded on
You are half right, half wrong.
It is true that a non publicly traded firm won't see an immediate effect if one of the shareholder leave the ship, but businesses work on trust. If Tencent sell its share, it is a sign that it doesn't trust the studio anymore. Thus, potential private investors, like banks, will be more hesitant to work with them, and will ask for higher rates to compensate for that perceived lose of trust. Thus, hurting the Studio.
Shareholders have a right to sell their shares. If there is no other buyer, then the company will have to pay them for it. They may not have enough liquid capital to pay off 30%. Other assets might have to be sold off, which may make it difficult to operate.
Huh?
I did a little more research, and it tends to be only specific circumstances and shareholder agreements, but there are times when a shareholder can force a company to buyback the shareholder’s stock.
https://achkarlaw.com/what-to-do-if-company-refuses-to-buyback-shares/
Could they even sell if nobody is buying?
if the company isn't publicly traded they can't always sell even if they want to
It would be bought. That's how stocks work. If there is a promising company, there will be interested buyers.
Well, penny stocks exist. It's possible that Tencent suddenly liquidating their 30% share could bottom out the share value temporarily. If the market decided that Tencent liquidating their holdings was a sign that the company was going under, that should drive the price down, correct?
Excuse me?
Please stay civil
Clearly yours is because that's not a normal response to someone asking a reasonable question.
How can you sell something if no-one is buying?
It's so irritating to see how eager people come to defend Larian on their lies every time someone calls it out. You're acting like I said Tencent has Larian on the leash. I mean you're not even disagreeing with anything I said. Tencent holds shares. They are shareholders, as the article states. Maybe read it again? Do you also claim Larian didn't receive funding from Tencent? Because Larian was very vocal about not receiving any funding, playing dumb when people wondered how Larian even made such a huge game.
Rumors have it Hasbro's gonna sell D&D and Tencent is the most likely buyer. We'll see how much of Larian's soul will be left when they get approached to make a huge D&D mobile gacha or whatever Tencent comes up with.
I'm getting whiplash from your logic. You just accused another user of acting like you said tencent had larian on a leash, which we can all agree is not true. Then you go on to say Larian is going to lose its soul when tencent approaches them with a gacha game, as if larian would take them up on this like Tencent has any say in what Larian does.
Also, Hasbro isn't selling DnD. Tencent is attempting to buy adaptation rights to the DnD IP, which may not even be true. By all accounts, WotC is the most profitable division of Hasbro. Sounds like you read another headline and didn't read the article...
https://www.forbes.com/sites/jamesfarrell/2024/02/01/dungeons--dragons-publisher-denies-selling-game-to-chinese-firm-heres-what-to-know/?sh=18d6d6b65159
No, I am saying Larian will do it on their own accord rather than losing out on money in the end. It‘s a tale as old as the gaming industry. We‘ve seen so many downfalls that parallel this pattern and if they‘re already this dishonest at their peak, then I‘m really worried how bad it will be when they‘re at the bottom. Even CDPR didn‘t show nearly as many red flags prior to the Cyberpunk debacle.
Oh yeah if Habro says so it must be true… boy oh boy.