How does Perfect World's "Going Private" merger affect us ?

estora
estora Posts: 2 Arc User
in General Discussion
Greetings.

I was just a bit curious, after reading off the final comapny merger consideration being approved just a few days ago (July 28th) and PWRD has been de-listed from NASDAQ, and is now completely owned by Perfect Peony Holdings Co Ltd, and then seeing the very sudden server merge announcement ready to go off already today (I know, I wasn't around for a few days). Which is what it is, a few days only since the first inkling of a server merge hit the forums. And I simply felt a chill when I connected the dots, I hope that I'm the only person with that reaction, if so, then I'm just being paranoid, if not ... I want to know how bad it's going to get or what to expect.

Thank you for your time and patience in replying to my query.

Best Answer

  • voluminous
    voluminous Posts: 86 Arc User
    Answer ✓
    China companies, when the income, free cash flow of china companies listed in Hongkong or USA goes to the low and traders keep selling short, they will bring it back to private, buying back at the 52 weeks low price of the company.

    Recent example, Alibaba.com on HongKong Market, it bought back to private because, the financial status of the company went so bad and Alibaba.com bought it back at 52 weeks low, very low. This means, alibaba.com took all the goodness before all went bad. To those who bought at higher prices, the additional equity are stolen from alibaba.com since they paid for the lowest after they got the rights to go private as the majority. They pressed the prices so low, to buy back.

    Alibaba.com repackaged to be Alibaba group, it wanted to relist in the HongKong Market but was rejected so they went US market. HongKong market doesn't want China companies that work this way.

Answers

  • sylenthunder
    sylenthunder Posts: 3,061 Community Moderator
    It's just a money move. Won't affect us at all. Companies in China do things like this all the time.​​
    582c1776c46eef7b527939a98b9d95a5.png
    PWI Technical Support ~ ~ ~ PWE Support Tickets

    Support Email: customerservice@perfectworld.com
    ​​
    Get the Forums Enhancement Extension!
  • nakhtuul
    nakhtuul Posts: 161 Arc User
    I have no doubt it is all connected. We shall see if Chi has the best interest in this game, or his pocket. He is already filthy rich, I can't imagine he can make much more money from this company without going upside down.

    Perfect World International Alumni
    Closed Beta 2008 - Present
  • hypereccentrik
    hypereccentrik Posts: 529 Arc User
    edited August 2015
    Less shareholders means less people to answer to. If the game itself is profitable without shareholders investments then there might not be anything to worry about.
  • tesone
    tesone Posts: 45 Arc User
    I guess I must have missed the first announcement on this, since this is the first time I'm certainly hearing it. I guess I shouldn't be surprised, there have been a lot of switching of companies in the gaming industry over this past year. fox-19.gif​​
    siggy_zpscq8zz0q8.png

    | Retired PWI veteran 2010-2015 |
  • jamesburr36
    jamesburr36 Posts: 150 Arc User
    The world stock market and the chinese stock market are literally houses of cards which may come crashing down. Probably not a bad move to pull out like they did.
  • seitori
    seitori Posts: 1,328 Arc User
    tesone wrote: »
    I guess I must have missed the first announcement on this, since this is the first time I'm certainly hearing it. I guess I shouldn't be surprised, there have been a lot of switching of companies in the gaming industry over this past year. fox-19.gif​​


    This privatization bit started to rear up its head back around the time that "PWE & Cryptic" suffered their mass layoffs & staff reductions (that ended up losing us our last CM "sparkiesoft" & left "surtr" basically the last one standing, who could still actually help tend to us for awhile)

    though it wasn't widely spread online "on the widely known internet knowledge level" it did pop up on some of the business sites online (though tbh, I'm honestly surprised it took them this long to do it)
  • cira1818
    cira1818 Posts: 108 Arc User
    i read an article i will have to hunt for it, but i think the original owner/creator bought it back, the offical deal was done on the 28th and paid a lot for it back. The article was actually done like a month before hand with the head office runners, so who knows what they will have in store.
    1421836914pizapw1434850700.jpg
    Like the Foxes? ake one here at the link, all credits to the maker of this fun game!
    http://www.deviantart.com/art/Fox-Creator-1-2-491912551
  • estora
    estora Posts: 2 Arc User
    Greetings.

    A Thank you to all of those who replied, I chose the best logical explanation from voluminous, his English was somewhat bad, but I understood the point he was making. So, this is the way China does things, I am still a bit paranoid about the implications of privatization of Perfect world, and this server merge really freaked me out, after all there was zero consultation that I know of, or even a discussion on it, and private companies like doing stuff like this, doing things on a whim :( (or because of even more drastic cost cutting lol). I hope this doesn't lead to any weird changes as mentioned by other answers, and that this is just business mumbo-jumbo. I'm going to put down the AK47 I was going to use too shoot Mr Chi with :smile:

    Thanks again to everyone who took the time to reply.

Categories