729
'We don't have shareholders, but we also don't think about them,' Larian Studios uses its stage time at the DICE Awards to speak out against a brutal industry climate (www.pcgamer.com)
submitted 2 years ago by to c/games@lemmy.world
76 comments fedilink hide all child comments
you are viewing a single comment's thread
view the rest of the comments
[–] 11 points 2 years ago (6 children)

Can't see how it would harm the company. Stocks and shares are just a way to raise money in a company. I'll sell you x% for $yk and own that amount now.

Even with normal shares 30% is a minority stake especially if a single entity owns the other 70% (ie. You can express your opinion but I outvote you every time). Unless Larian are planning to raise additional funds by selling equity and need the stock price to remain high for that reason, Tencent are free to sell their portion without any impact to Larian. (Heck a drop might even let Larian buy itself back)

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 6 child comments
    •
  • [–] 1 point 2 years ago (2 children)

    If Tencent sell its shares, it would make the share price plummet, which will make it harder for the studio to get money by selling new shares.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 2 child comments
    •
  • [–] 20 points 2 years ago (1 child)

    They're not publicly traded, and the only shares are the ones that Tencent owns. The shares are worth whatever someone buys them for. The price doesn't fluctuate because there's no market with which they are traded on

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 1 child comment
    •
  • [–] -4 points 2 years ago

    You are half right, half wrong.

    It is true that a non publicly traded firm won't see an immediate effect if one of the shareholder leave the ship, but businesses work on trust. If Tencent sell its share, it is a sign that it doesn't trust the studio anymore. Thus, potential private investors, like banks, will be more hesitant to work with them, and will ask for higher rates to compensate for that perceived lose of trust. Thus, hurting the Studio.

  • permalink
  • fedilink
  • source
  • parent
  • [+] -6 points 2 years ago (2 children)

    Shareholders have a right to sell their shares. If there is no other buyer, then the company will have to pay them for it. They may not have enough liquid capital to pay off 30%. Other assets might have to be sold off, which may make it difficult to operate.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 2 child comments
    •