Tencent Purchases Clash of Clans Dev Supercell for $8.6 Billion

[the-pi-guy]

link

The title pretty much says it all.  

[Legend]

That's a crazy amount of money.

LOL made sense to me, but will this really ever make that money back?

[Max King of the Wild]

Who is tencent and how do they have that much?

[Xevross]

That's a crazy amount of money.

LOL made sense to me, but will this really ever make that money back?

With just 3 games, Supercell made $924M in profits on $2.3B in revenue in 2015 | GamesBeat | Games | by Dean Takahashi

They made a profit of $924m last year. Unless the market drastically changes soon they'll make it back.

[the-pi-guy]

Who is tencent and how do they have that much?

Yes!  Someone who asks the big questions!



They are one of the biggest video game companies in the world.  They are a Chinese investment company who invests in a lot of different fields.  
They are behind League of Legends, Epic Games(40%), SMITE, Activision Blizzard (25%), Riot Games

[Max King of the Wild]

With just 3 games, Supercell made $924M in profits on $2.3B in revenue in 2015 | GamesBeat | Games | by Dean Takahashi

They made a profit of $924m last year. Unless the market drastically changes soon they'll make it back.

Well, they'd need 9 years of consistent profits like that.

[Xevross]

Well, they'd need 9 years of consistent profits like that.

That will probably happen. Their latest game is extremely popular. Their name is huge now.

They have 3 games in the top 10 grossing games google play chart. 4 in the top 15.

[Legend]

That will probably happen. Their latest game is extremely popular. Their name is huge now.

They have 3 games in the top 10 grossing games google play chart. 4 in the top 15.

But how long can that last? All these internet devs to me seem like flashes in a pan. Are there any that have stayed super successful for 10 years?

[Xevross]

But how long can that last? All these internet devs to me seem like flashes in a pan. Are there any that have stayed super successful for 10 years?

Well no because these games haven't really been around for 10 years yet. We'll have to see, it is a big risk.

[Max King of the Wild]

That will probably happen. Their latest game is extremely popular. Their name is huge now.

They have 3 games in the top 10 grossing games google play chart. 4 in the top 15.

Let's also not pretend that companies are okay with not seeing a return on their investment for 9 years. Let's say in 9 years they break even but aren't nearly as popular. They now only make 100m a year. After 10 years and 8.6b investment a profit of 100m is not okay...

[Xevross]

Let's also not pretend that companies are okay with not seeing a return on their investment for 9 years. Let's say in 9 years they break even but aren't nearly as popular. They now only make 100m a year. After 10 years and 8.6b investment a profit of 100m is not okay...

Er I'm not pretending anything. They're the ones who bought it, I'm just trying to point out reasons why they might have decided to do it.

I don't think its a good idea personally.

[Legend]

Well no because these games haven't really been around for 10 years yet. We'll have to see, it is a big risk.

From my ignorant perspective it feels like mobile is 90% luck. All these devs catch lightning in a bottle and then ride it out as long as they can.

[the-pi-guy]

From my ignorant perspective it feels like mobile is 90% luck. All these devs catch lightning in a bottle and then ride it out as long as they can.

That's how it seems to me too.  
Particularly helps when mobile is so filled with stuff.  Look at Zynga, kind of similar market.  They were doing crazy well with millions upon millions playing their game.  The last couple years they have been losing money.

Zynga Now Worth Less Than Its Own Office Building — Halting Problem — Medium

[Xevross]

From my ignorant perspective it feels like mobile is 90% luck. All these devs catch lightning in a bottle and then ride it out as long as they can.

Supercell and King are the two companies who may not be like that though. All the games they make are very popular and rake in the cash.

[Raven]

On today's episode of Chinese Companies Who Over-invest In shame That Will Probably Fail....