Tencent shares: Finally someone's signature got it wrong so I have to nitpick it.
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Say it with me now: Stock Ownership is a claim on net profits. It is completely untrue to say that 80% of your purchased GGG-pack money goes to Tencent, unless you believe GGG lives in a mystical fairy land where no one is paid wages, building rent/ownership is free, utilities are free, web servers are free, computer and office space maintenance is free, etc.
Operating expenses and taxes get deducted before profits can be remitted to shareholders. Unless you can somehow coerce GGG/Tencent into releasing GGG financial statements to the public, you do not know what percent of your GGG-pack money goes into Tencent. If you believe that GGG is insanely profitable (i.e. that costs are much lower than revenues), they might have about a 60% profit margin, or 0.6*0.8 = about 48% of your GGG-pack money goes to Tencent. More realistically we can compare to the most profitable industries in the US, who have an average net profit of 18.4%, or 0.184 * 0.8 = 14.72% of your GGG-pack money goes to Tencent. I don't think any of these really actually matters, though, as it's not really about the allocation of money... it's about future decision-making when 80% Tencent ownership is thrown into the mix - will GGG programmers continue to be paid the wages they were being paid? Will there be more or less expenditures on development? etc. Need game info? Check out the Wiki at: https://www.poewiki.net/ Contact support@grindinggear.com for account issues. Check out How to Report Bugs + Post Images at: https://www.pathofexile.com/forum/view-thread/18347 Last bumped on May 24, 2018, 3:37:03 AM
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nah man, im sure that Chris lied to us and that none of this will be actually true, china numba wan
/s Good luck actually getting people to believe any of this when they're all in full pizzagate mode over the sale to begin with. 1337 21gn17ur3
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You can assume whatever profitability math you'd like. I'm well aware that "80% shares means 80% money!" is ridiculous and patently untrue.
The issue a lot of folks including myself, have is that no percentage of pack money going to Chinese EA is okay, and that such a gross buyout clearly and inarguably compromises Chris' ability to plan for the future of Path of Exile. Long-term plans and strategies are out the window; GGG is now on a quarter-by-quarter basis and cannot plan beyond one fiscal year due to having to Please The Investor. Grinding Gear is now owned primarily by Chinese EA, not by a man we can hold accountable for bad decisions or laud and support for good ones. Every dollar I spend on Path of Exile now enriches Chinese EA. It may do so by a negligible amount, and it may enrich Grinding Gear more, but pray do tell me, Adghar. You're a sharp fellow, you've got a history of rock solid advice and well thought out ideas behind that nameplate of yours, so maybe you know. What are my options for supporting Grinding Gear, paying Chris and Co. for their work, without enriching Chinese EA? Because I'd love to be able to continue paying Chris and Co. for their work, but the thought of paying Tencent for that work instead, no matter how trivial the final fraction is, makes my sphincter bleed. So. What's my answer, Adghar? She/Her
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600 points have been added to your social score. Keep up the good posting comrade!
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" Here's a thought: why don't you try this on WeChat instead of on here? 1337 21gn17ur3
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" Send your donation directly to Chris Wilson's home address. 1337 21gn17ur3
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"  Last edited by erdelyii#5604 on May 23, 2018, 4:48:03 PM
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" You enriched Tencent already before by $10 per $60 pack, now $15. Why is it a problem now l 0 l? The problem still remains that nobody actually understands how businesses work. Big partners like Tencent are a huge bonus for monetary and ESPECIALLY strategical reasons. This isn't some random Bitcoin dude who just bought some stocks. If, especially from now on there's any quality loss, it's all on GGGs laziness, not Tencent doing something fishy. Uploaded an awesome Exsanguinate Freeze Explosion build on the forums - https://www.pathofexile.com/forum/view-thread/3508506 Last edited by Kiss_Me_Quick#4554 on May 23, 2018, 4:47:20 PM
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" +1 1337 21gn17ur3
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" You can have pizza delivered to their offices! As to the topic, control is control. 80% of net on paper means nothing. We know nothing about everything else going on between the companies. And they are a private company so not only will we never know, but it also makes it so much easier to transfer profits anyway you want. Management fees, financing fees, royalties, performance adjustments, there's so many ways to play around with intercompany revenues. It's not like Tencent is just going to sit back and wait passively collecting 80% of net. |
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