From 0 to 100 in PTK ( bighfish acquires funpause )

Discussion in 'Feedback Requests' started by patrox, Jan 6, 2006.

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  1. Dan MacDonald

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    Funpause is a business success story. Any entrepreneur looking to start a business has in mind how the will eventually make money off the business. In most cases this is an equity event, like being acquired or in some cases going public.

    Congratulations to Emmanuel for the successful maturation and acquisition of his business.
     
  2. cliffski

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    Yeah I kinda agree. I'm happy for Emmanuel, as this is obviously what he wants, but it's not what I'd choose. If someone offers you $100k for your business it MUST be worth more, else why would they make the offer? I can see how its tempting to take big piles of cash, but I know that Positech wouldn't be positech if it wasn't owned by me.I'm certainly not assuming that my company will ever be acquired. I'm hoping to get it to act a bit like Dexterity, where it brings in a nice constant income I can retire on, while I spend my time coding some super ambitious stuff without worrying about selling it.
    I think its interesting that 3 of the big names in software, Microsoft, Google and Amazon have (as far as I know) resisted any temptation to ever be acquired.
     
  3. Batley

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    Er, who could afford to acquire Microsoft, and why would Bill give up his monopoly?

    Congrats!
     
  4. Nauris

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    I think the difference in opinions here just reflects the divide between hobbyists and those who view gamedev as business. Now, there`s certain overlapping there so its not clear cut divide, but still. Thats all.
     
  5. princec

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    Specifically, Cliff - the way it works is this: your business is valued by potential suitors. There are roughly two phases a business can be in - which is "startup" or "matured". During the startup phase your valuation is likely to be roughly 2x your revenues. So if you've sold $50k of games your business will be valued at $100k. During the "matured" phase your business is valued at approximately 5x your profits. The transition to matured is therefore at approximately the point that 5x profits > 2x revenues.

    Now the whole idea is to flog the business and immediately cash in your share options to get as much personal cash as possible. When you sell your business you are usually contracted to remain there for a year or maybe two as the director. But the whole idea is, to make your fat wad of cash, serve your remaining time as director, then leave - and go do what you want to do with the money. I hope that Emmanuel is going to do just this - take his $500k or whatever, wrap things up for a year, and then go and start his own studio again with his own funding and start the cycle all over again, making ever bigger sums of money.

    Cas :)
     
  6. Anthony Flack

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    I don't know about this "hobbyist" label - it makes it sound like something done for recreation; for fun. But it's a serious undertaking, and for me at least, it's really not that enjoyable. It's like calling artists who aren't simply commercial illustrators "hobbyists". It's just that some people are driven by other things besides cash. Of course, I want to see cash too, because I can't keep grinding myself down forever - but to me that's never been the motivating factor for anything.

    I don't think this makes me a hobbyist. It's not a Sunday painter sort of situation. In fact I might be even more serious and committed than someone who's doing it for the money. It's like someone who decides to cycle all the way around the world. That's not a hobby - it's the sort of thing us insane people do to see whether or not it will kill us.

    I actually do care about games, and I think that one day, I might be able to make a really good one. Which means I kind of have a duty to try.
     
  7. princec

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    I'm with Anthony on this :) We do it for the glory of the artform.

    Cas :)
     
  8. Nauris

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    Ah, sorry, Anthony, I didnt mean it like that. Perhaps there just isnt good enough word for people like you, princec and cliffski. I meant hobbyist in the sense of "I`ll make this here game and of course hope that i`ll brings loads of cash too, but even if it doesnt, it`ll be more or less alright for me as long as the game is really good and I can be proud of it".
    Here, quite a long word :) Hobbyist in this example doesnt imply Sunday-mornings-tinkering and subpar quality, but simply much less emphasis on business side than normally upstart businesses put.
    Now, with time it can pay back quite alright, as seems to be the case with cliffski, and THAT`s really good news. Perhaps better news than the fact
    that Emanuel`s company is acquired. Still, that doesnt belittle Emmanuel`s achievement- just different paths and all.
     
  9. Raptisoft

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    What's the good of the glory of the artform without 200,000 people standing there saying, "wow that's great, and to prove it, I'm gonna buy it!"
     
  10. Anthony Flack

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    That's okay - I'd just been hearing that term quite a lot lately and felt like sounding off about it. Rather than hobbyist, it's more in line with the way a painter or musician or filmmaker might start their career.
     
  11. princec

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    No need to reply to that, Anthony ;) I think it was rhetoric.

    Cas :)
     
  12. Giuli

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    Anthony, what are you trying to say? You're morally superior to others because you just don't develop games for cash? Because, other than that, I can't see the point of your contribution to this thread.

    I ask: why should we care about your rants that obviously are off topic to this thread. Is your ego hurt? It seems you're trying to find excuses for something that you've never done.

    Who are you to judge others? Your rant reminds me of those who say "I'm not rich but at least I have not sold my soul" as I way to justify the fact they've accomplished nothing in life.
     
  13. Savant

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    You realize that Anthony wrote Platypus, right? No, he's not rich, but he's accomplished more than most on this board.
     
  14. Sean Doherty

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    Giuli,

    You may want to do a little homework before you make comments that are "lets just say off base".

    Regards
     
  15. baegsi

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    An alternative differentation: there're basically two kinds of self-employed people, craftsmen and entrepreneurs. The former hone their craft while the latter build systems. The ultimate goal of an entrepreneur is to make him replaceable so that the system can work without him, while the craftsmen always depend on their own working power.

    None of them are superior in terms of business sense. They both have to sell. However, I think it's important to decide which of them I want to be, because they require different skills and strategies. At least, choosing a side makes life much easier.
     
  16. Batley

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    Whilst i dont agree most of what Giuli says, to be honest i've often wonderend where all this guru worship towards Anthony comes from, no offence intended, and probably meaningless coming from me who hasnt released a game, but i played platypus and wondered what all the fuss was about. Is his claim to fame that he uses plasterscene?
     
  17. Savant

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    He has a unique style, he can finish a game, and the game was fun.

    Those are 3 things I have yet to see from a lot of people on this board.
     
  18. Dan MacDonald

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    Once marketed properly (as a downloadable game, instead of retail) platypus was a hit game (top 10) on all the portals.

    hobbyist vs. entrepreneur, it's not about a moral high ground it's about values. Those who find the value in independant development to be the creation of wealth / business / financial independence (while enjoying the work ), this is a fairly entrepreneurial archetype. And those who value independent development for it's freedom, the potential buck the yoke of "profitability" and make something simply because it can be made and can be made to be fun, regardless of what convential market wisdom dictates.

    I come from an entrepreneurial background so I do empathize with the entrepreneurial spirit. It's a beautiful thing, and it's what makes my country what it is. However I do see a value in the independent spirit, as it applies to game development, the will to do something personal something inspiring weather it be big or small and irregardless of what conventional wisdom may be. (casual + downloable = $$)
     
  19. James C. Smith

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    [sarc]
    Wow. All this time I was going about things wrong. I thought a business (and it’s owners) could make money by selling a product or service. To bad Microsoft never got acquired. They could have made some real money if they had.
    [/sarc]

    If my business was acquired I would loose the best job I ever had.
     
  20. James C. Smith

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    Maybe Microsoft isn't the best example since you could argue they were acquired by the public when they started making their stock publicly available. What about a company like Mars. I bet they make a little money selling their products such as M&M's, Snickers, Milky Way, 3 Musketeers, Pedigree, Skittles, Starburst, Whiskas, Sheba and Uncle Ben's foods.

    I am not saying there is anything wrong with this particular deal with Funpause. If that is their path to success then good for them. I just find it strange when some people assume that selling your company is the only way to succeed. Some companies and their owners mange to have trienniums success and make lots of money without ever selling their company.
     
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