PWRD going private

reaperarm1

I don't claim to be a financial or stock expert but it seems pwe is'nt doing so well from this review.
What say you financial experts dwelling the forums? Is pwrd doing badly or is this just normal stuff that happens with companies regularly?

http://tinyurl.com/pujwcoo

Mosz - Heavens Tear

one of the highest cash shoppers decided it would just be easier to buy the companyb:laugh

Peccable - Raging Tide

they can be lucky that the stockmarket doesn't reflect customer satisfaction or the quality of the product, else they would be really screwed.

Mayfly - Dreamweaver

If you read the article, it's the company founder who's buying back the company.

Is PWRD PWE, or PW China?

reaperarm1

Mayfly - Dreamweaver wrote: »

If you read the article, it's the company founder who's buying back the company.

Is PWRD PWE, or PW China?

Like I said i'm no expert but from my understanding the founder is buying it to possibly save it. It appears the stock is weak and not seeing much investment on the public market. I'm not sure honestly though just my observations.

I'm sure there's some experts on these forums that could give us a rundown of what it means.

Keisari - Raging Tide

Seems like the founder of PW-China ish buying rest of the stock(he seems to have been major stockholder already) to 100% of it. PW-China has seen 11% decrease to it's stock value while the stock marketplace(NASDAQ) rose 14% at the same time. He's probably trying to save the company as PC-gaming has seen a decline and PW-China's Microsoft-cooperation and mobile games have not yet risen to their full effect, thus probably needing investments to avoid falling before they do.

At least that's how Kitty comprehended the news o.o Kitty might be 100% wrong, though, due to her lacking english economic vocabulary.b:cry

c44102

It would be safe to say they would be doing 100% better if there custmer serves was better. Because its junk and most people now just play because there friends are here. They stopped putting money on to the game because when something messes up they submit a ticket and get HORRABLE custmer serves. Its simple really they want more money they need to treat us the players better.

Father_gold - Sanctuary

sounds to me more like a china issue and not a PWE issue. founder is reclaiming the company, but that says nothing of PWE's performance, though there will probably be an impact later on.

XXHotXx - Morai

that website is predicting a drop in stock price and a negative trend for PWRD in the short period,

what its weird its that a takeover bid or whatever the old owner is doing, is causing a negative outlook instead of pushing the price per stock

sounds really weird, but yea deftly not good news.

slowwetkiss

reaperarm1 wrote: »

Like I said i'm no expert but from my understanding the founder is buying it to possibly save it. It appears the stock is weak and not seeing much investment on the public market. I'm not sure honestly though just my observations.

I'm sure there's some experts on these forums that could give us a rundown of what it means.

It is due to the sheer lack of true customer support. This game is now losing more players on a daily basis than they get new players to replace them. The player base is diminishing and that reflects on the money taken in. In laymans terms- Because of the lack of true customer support, the money coming into the game is not what it used to be. The company is probably going into the red (not making a profit). The owner is obviously wanting you to spend your money in here, but will give you nothing in return. Hmm sounds like a scam to me b:shocked

Salari - Raging Tide

Mayfly - Dreamweaver wrote: »

If you read the article, it's the company founder who's buying back the company.

Is PWRD PWE, or PW China?

PWRD is the parent company of PWE, and a few others. You can goto http://www.pwrd.com/en/international/overseas/region/region.shtml and see which subsidiaries pwrd actually owns and which is a licensee of one of its games.

Sylvae - Sanctuary

Would make more sense why PWRD divested itself of its 15% stake in Shanda Games (GAME) recently. Streamlining into its core business, with focus on whole company acquisitions would be a more worthwhile way to go, especially depending on how the deal with MS is projected to work out.

Though more than likely it's a move to get the stock at a cheaper rate, wait for any revenue boosts from Xbox deal and any other company they are thinking of acquiring, and going public again in a year or two at a higher price valuation.

But you also need to look at whether it's a firm offer or not. Even shanda had a proposed buyout to privatize the company that was non-binding, and I think went nowhere. Did hike the price from 2-3 to mid 6 solid. But that was when mobile games and such were showing such strong growth.

If it's a non-binding offer, I'd ignore it. As hard as it may be to believe, China has more corrupt deals than wall street does; which is why their P/E valuation is usually under 10, compared to western companies with higher teens.

WannaBM - Archosaur

I dont have any experience with this kind of happenings. However my common sense makes me think this:

It is the founder who wants to buy the shares. He is, i assume running the bussiness and knows best what to think of it. He is willing to invest his own money (well borrowed money, but that doesnt matter) Id guess he would be willing to do that when he is confident that the company has a much better future than the market seems to value it for. Not when he thinks its going badly.

The word 'ending' might give you a bad feeling about the article, but its just ending from a stockbrokers POV, not from the company.

Of course it might well be something strategical like sylvae is indicating and worth ignoring

Sylvae - Sanctuary

WannaBM - Archosaur wrote: »

I dont have any experience with this kind of happenings. However my common sense makes me think this:

It is the founder who wants to buy the shares. He is, i assume running the bussiness and knows best what to think of it. He is willing to invest his own money (well borrowed money, but that doesnt matter) Id guess he would be willing to do that when he is confident that the company has a much better future than the market seems to value it for. Not when he thinks its going badly.

The word 'ending' might give you a bad feeling about the article, but its just ending from a stockbrokers POV, not from the company.

Of course it might well be something strategical like sylvae is indicating and worth ignoring

Depends, it's china. Their government tends to randomly decide which corrupt company to investigate based on political shifts and backroom deals quite often. And they have much higher penalties when they do decide to adjudicate them than any Western country does. Just because it's going private, doesn't mean it's a good deal. Especially if they go with venture capital to privatize it. And it's china, did I say that already?

WannaBM - Archosaur

Sylvae - Sanctuary wrote: »

Depends, it's china. Their government tends to randomly decide which corrupt company to investigate based on political shifts and backroom deals quite often. And they have much higher penalties when they do decide to adjudicate them than any Western country does. Just because it's going private, doesn't mean it's a good deal. Especially if they go with venture capital to privatize it. And it's china, did I say that already?

Do you mean they might be goin private to prevent investigation ?

mechabeastmc666

reaperarm1 wrote: »

I don't claim to be a financial or stock expert but it seems pwe is'nt doing so well from this review.
What say you financial experts dwelling the forums? Is pwrd doing badly or is this just normal stuff that happens with companies regularly?

http://tinyurl.com/pujwcoo

Perfect world is a global juggernaut that has been here for years. They just recently launched a new expansion with 2 new classes. Something a Failing and Broke game wouldn't have been able to do. It's just you really wanting it to fail because of the other ungrateful ingrates making negative threads about the company. The hard working support staff is the best i've ever seen in a video game, and the Gms try their Best to deliver a equal playing field for all of the players. Over 2 million accounts created so far, and now they have even more games to their impressive list, such as APB Reloaded, Star treck, neverwinter and more fun tittles. Before they were on their last legs, they would Lose all of those first. So sorry to disappoint you amigo.

Sylvae - Sanctuary

WannaBM - Archosaur wrote: »

Do you mean they might be goin private to prevent investigation ?

Even in western countries, many companies will go private for the fact that a lot of books get closed. Clean everything up, and it's like a mutual fund being rolled into another fund; the past ceases to exist. There are some things that won't be shut, but as long as there is no proven shenanigans with the buy out, and the price is deemed fair, not a lot of recourse once it goes private.

Also, the Chinese economy hasn't exactly had the same cycle of the US or European markets, even though they do interact.

No way to tell for certain why someone is doing a specific action, which is why markets have so many lawsuits always going.

Best thing is to look at releases, look at key words for any prospective buy out (binding or non-binding), and what deals are in the works to get a general idea of why something might be happening. I was following when they had the deal with Xbox and its release in China, but also remember hearing about an issue with Xbox's release in China being delayed; and a possible relook at even allowing them in.

And PWRD had already invested into porting some of their games (popular ones like Neverwinter and new ones) over to F2P software for Xbox to play with. Who knows what kind of investigations kicked off as a result of a console coming to china, getting delayed, etc. And we don't know how legal the terms of the deals were.

Heck, if it were easy to get a definite on such things, there wouldn't be people losing money on the market.

WannaBM - Archosaur

Sylvae - Sanctuary wrote: »

Even in western countries, many companies will go private for the fact that a lot of books get closed. Clean everything up, and it's like a mutual fund being rolled into another fund; the past ceases to exist. .

Meh, i wish life was that easy for us simple folks. b:surrender

ovenusarmanio

XXHotXx - Morai wrote: »

that website is predicting a drop in stock price and a negative trend for PWRD in the short period,

what its weird its that a takeover bid or whatever the old owner is doing, is causing a negative outlook instead of pushing the price per stock

sounds really weird, but yea deftly not good news.

It is going up thanks to that announcement.

http://www.nasdaq.com/article/perfect-world-co-pwrd-is-up-sharply-after-going-private-proposal-20150102-00161

I don't know how this will affect us but the buyer is someone who was already the chairman at the company.

Joe - Morai

I don't really think that PWI is in danger and especially not our version.

If the buyer really is a co-founder and currently the chairman than especially not.

Pwi generates loads of profit..I mean really just from the PWE side. The support and CMs are shared over mamy games...so the staff expenses should be very low (ya devs are way more expensove @CN) and running and maintaining a server isnt as expensive as some may think.

Add to it that pwi is still the game that people spend most cash on from all of PWEs games. Not even Neverwinter and Star Trek come close. We might complain about lack of support and all of this but they are actually keeping their costs low to generate the max profit out of PWI atm. Why? Because most people dont care. They only care when certain problem show up. And even of so only 30% of those people do actually quit and the rest plays/cashs on. PWE just knows that they can do it with out community xD

SSo all in all PWI is currently way too profitablr for them to let go. They will surely wanna get rid of some of their games no one is playing anyways...like FW and stuff.

PS: I surely don't wanna devaluate the work sparkie and the support is doing. They are doing a great job actually. The problem is that they have to take care of too many dif. games at the same time. Especially sparkie is surely giving his best to be there for us...but as we all know...pwe only knows as much/can tell us as much as china lets them know. The fault lies in china...but xD as the money still flows..why should they change something?

Sylvae - Sanctuary

oVenusArmanio wrote: »

It is going up thanks to that announcement.

http://www.nasdaq.com/article/perfect-world-co-pwrd-is-up-sharply-after-going-private-proposal-20150102-00161

I don't know how this will affect us but the buyer is someone who was already the chairman at the company.

Not sure how good I'd fell if it's the chairman who's been there a few years.

Still remember when I owned the stock, how a VC opportunity opened up, and received funds, right before an earnings conference kicked off. Now maybe that was the Microsoft deal, but that is just a little too shady for my liking.

ovenusarmanio

Sylvae - Sanctuary wrote: »

Not sure how good I'd fell if it's the chairman who's been there a few years.

Still remember when I owned the stock, how a VC opportunity opened up, and received funds, right before an earnings conference kicked off. Now maybe that was the Microsoft deal, but that is just a little too shady for my liking.

I suspect it might be the same guy? He was stated in the article to be one of the founders. I know he got investigated for something a while back, but was cleared of any wrong doing.

Kemonomimi - Morai

Maybe time to go back to my lancer and/or mystic in that other game

XXHotXx - Morai

oVenusArmanio wrote: »

It is going up thanks to that announcement.

http://www.nasdaq.com/article/perfect-world-co-pwrd-is-up-sharply-after-going-private-proposal-20150102-00161

I don't know how this will affect us but the buyer is someone who was already the chairman at the company.

yesterday pwrd closed @ -0,47% monthly high, but yearly average, but still double value respect 2 years back horizon

usually a takeover bid is supposed to push the price to overall peaks, the fact that it pushed to the year average value is kind of weird

and yea my good knowledge of the gaming world made me get this title in my portfolio, i believe the PWRD politic of taking over the major gaming houses of the world is a good strategy, and the fact that they own DOTA 2 rights in china its not as bad as stated in the OPs article
also the mobile games like elemental kingdoms have a huge playerbase,
Chaos server itself can count on 40k players (i am top100 ranked in that server xD)

DarkSkiesx - Dreamweaver

I think we should be optimistic about it.

A management buyout by the current chairman and one of the founders means the person controlling the company is someone that likely has a personal attachement of some kind to PW and he will likely be more consumer focussed than the current assortment of investors who most likely only give a **** about earnings per share and dividends which might explain the shift in diversification to loads of new games and products which derisk the stock dince going public.

Going back to being a private company I think we'll hopefully see a shift in priority in our favour, though the actual benefit we see from PWE which is a subsidiary (I think) of PWRD will be less visible but still may drive a change in priority or culture and we get more resources allocated to PW.

We'll see.

Sylvae - Sanctuary

oVenusArmanio wrote: »

I suspect it might be the same guy? He was stated in the article to be one of the founders. I know he got investigated for something a while back, but was cleared of any wrong doing.

Yeah, that was a different issue. I get leery of any company that decides to appropriate money from earnings for a VC that is given absolutely no indication of what it is; in China? That's just not good to hear, especially since the VC was stated as not being anything internal. And Chinese stock market has lots of VC buys of shell companies of owners, that are proven to be over-valued or non-existent. Secrecy is all well and good, but it's a better idea to do secret VCs at a different time.