Sorry you guys, I didn't mean to turn this into a tangent about Rift VS. WoW, but I do feel like Blizzard slacks a bit. I feel like better management of the Development team due to lower funds might actually be a good thing. Currently Ghostcrawler will come out and acknowledge that something about the game is bad, but players still have to wait for four months for it to get fixed (dailies, warriors in pvp, wintrading in RBGs etc. come to mind).
Take Skirmishes for example. Blizzard acknowledges that players all want these reiterated into the game. Now that you no longer have Arena teams, it makes more sense than ever to implement skirmishes so that players can play with friends without destroying their personal rating. Blizzard's response? Yeah, it would be awesome but we have no way of implementing that at this time. My own theory? They'll introduce it as a "new feature" in the next expansion pack, alongside with new character models that were probably finished six months ago.
there isn't an original bone in either of their bodies, and thats ok cause if it works, use it.
games are an iterative medium, it doesn't really matter who did it first, it matters who did it better.
back to point, with as much as ACTI-BLZ has in pocket why is the siphoned amt 400mil?
Last edited by maldias; 2013-07-08 at 09:33 PM.
Quick everyone go buy a name change we have to save wow.
The linked article and the articles it in turn links to really don't seem to contain a lot of useful information.
It kind of sounds like Vivendi may be trying to force Activision-Blizzard to do a share repurchase/buyback in an effort to reduce the number of shares in circulation and effectively bump the earnings per share. From my understanding a share buyback is essentially the issuing company spending their free cash flow to buy back shares from the public which then get taken off the market. However, I'm still not sure how this helps Vivendi financially unless they assume that the Activision-Blizzard share price will be falling quite a bit in the coming months (share buybacks seem a weird way around insider trading laws too). I also don't know how they could force a share buyback as only the issuing company can do that. I really am not great on finance though and maybe part of owning the controlling portion of the shares gives them authority to force a repurchase? Other than this I'm not aware of how they could 'siphon cash' from Activision-Blizzard.
It would be awesome if someone on these forums who actually knows about corporate finance could chime in and shed some light on what the possibilities here are!
Considering blizzard makes about 80,000,000 a month I'm pretty sure they will be fine. They can practically print money from naive gamers by selling useless mounts etc. Also expect a cash shop.
The only reason I could see this not happening is because of the crazed hot pocket fueled fans out there that would form a real-life raid to kill Vivendi.
Fact: Activision-Blizzard share holders are pissing their pants right now. Not even a company like Activision-Blizzard likes to hear that they're suddenly going to be 400m in debt. Do you even realize how greedy and nitpickery they already are with their funds? Blizzard constantly already has to do more with less and less resources because the share-holders want to earn more and more..
Edit: of course I could be dead wrong too. We could see a dramatic decrease in quality, but that's not guaranteed to be the case either.