Splash Damage For Sale?

(pumpaloaf) #1

http://www.hkexnews.hk/listedco/listconews/sehk/2016/0703/LTN20160703157.pdf

(Terminal_6) #2

If ever a “TL;DR” was needed, it would be here. I’ll read it, eventually. Anyone else care to summarize…?

(pumpaloaf) #3

Some highights of the document:

The Targets comprise Splash Damage, Fireteam and Warchest. Splash Damage is principally engaged in the development of computer games for different hardware platforms, including consoles, personal computers and mobile devices. Fireteam is principally engaged in the provision of online services and back-end support of computer games. Warchest is principally engaged in owning, publishing and operating competitive multiplayer games with high production values for all leading platforms. The Targets are companies incorporated under the laws of England and Wales.

The Consideration (excluding the Aggregated Adjustment Payment) payable by Radius Maxima to Paul Wedgwood and the Optionholders under the Sale and Purchase Agreements shall not in any event exceed US$150 million (equivalent to approximately RMB996 million). The sum of the Aggregated Adjustment Payment payable by Radius Maxima to Paul Wedgwood and the Optionholders under the Sale and Purchase Agreements shall not in any event exceed US$10 million (equivalent to approximately RMB66 million). The sum of the amount payable by Radius Maxima to the Targets under the Main SPA (including but not limited to any payment obligations under the sub-section headed “Additional project funding” below), shall not in any event exceed US$10 million (equivalent to approximately RMB66 million).

Where it gets a little weird:

REASONS FOR AND BENEFITS OF THE ACQUISITION
The Group is principally engaged in the trading and manufacturing of chicken meat products, animal feeds and chicken breeds (collectively, the “Poultry Business”) and the development of video games (the Video Gaming Business”).
According to the annual report for the year ended 31 December 2015 (the 2015 Annual Report”), the Group continues to face an arduous task in respect of the Poultry Business, where, despite efforts to improve raw materials procurement, feed production, breeder and broiler breeding, broiler slaughtering and process, quality and safety management and sales mix rationalisation and channel expansion, the management of the Group still has limited control of the business results and profitability under the harsh operational environment in the PRC.

-Totally Awesome Chicken Trinket anyone?- https://t.co/WO8znuYpwo

Also:

The Group entered into the Video Gaming Business in July 2015 upon the completion of the
acquisition of 58% equity interests in Digital Extremes, which is a leading Canada-based video game developer. In May 2016, the Group completed the acquisition of a further 39% equity interests in Digital Extremes. The entrance into the Video Gaming Business enabled the Group (i) to diversify its business and mitigate the volatile and cyclical nature of the Poultry Business; and (ii) to enhance its profitability.

(dlux) #4

My crosspost from reddit:

This sounds like bad news to me.
Apparently this company also bought Digital Extremes, the studio behind Warframe.
Source: http://games.mxdwn.com/news/leyou-technologies-holdings-purchases-digital-extremes-creators-of-warframe/
I see companies like this as Vampires, they suck the blood out of a corpse and when it’s sucked dry they throw it in the bin.
Could be wrong ofcourse, but you see this shit all the time with non-gaming companies.
(Sell all assets, make the company rent it all back, go bankrupt.)

EDIT: http://www.reuters.com/finance/stocks/overview?symbol=1089.HK
Leyou is a company that does chicken meat products, WHAT TRINKET WAS JUST ADDED TO THE GAME?

“Leyou Technologies Holdings Limited, formerly Sumpo Food Holdings Limited (Sumpo), is engaged in supplying chicken meat products in the Fujian Province and sells its chicken meat products under the Sumpo brand. It has three segments: chicken meat segment carries on the business of slaughtering, production and sales of chicken…”

(Eox) #5

Lemme guess : the company is named Sumpo ?

Then you have no need to fear. It’s just basic business between companies. Sumpo probably is buying rights from Splash Damage in order to distribute Dirty Bomb in China. The same basically happened with Warframe, where Sumpo bought some rights from Digital Extremes. The same old dev team will continue to work on Dirty Bomb. Nothing really shady is actually happening. Warframe got “bought” by Sumpo yet it’s still the 3rd most popular F2P on steam.

When this was announced on the Warframe Forums, a lot of people totally freaked out for basically nothing. I really don’t want to see the same thing happening here, so keep in mind the following : Dirty Bomb is SAFE ! No need to worry AT ALL. You’ll keep the same dev team and every single decisions taken for the game’s developpement will still remain to Splash Damage. Actually Splash Damage will probably get funds from Sumpo themselves, which is great.

(dlux) #6

[quote=“Eox;193696”]Lemme guess : the company is named Sumpo ?

Then you have no need to fear. It’s just basic business between companies. Sumpo probably is buying some rights from Splash Damage in order to distribute Dirty Bomb in China. The same basically happened with Warframe, where Sumpo bought some rights from Digital Extremes. The same old dev team will continue to work on Dirty Bomb. Nothing really shady is actually happening.

When this was announced on the Warframe Forums, a lot of people totally freaked out for basically nothing. I really don’t want to see the same thing happening here, so keep in mind the following : Dirty Bomb is SAFE ! No need to worry AT ALL. Actually Splash Damage will probably get funds from Sumpo themselves, which is great.[/quote]

Makes sense, let’s hope it’s true.

(Xenithos) #7

Two questions, one, Where TF did you find this!~?
Two, I honestly can’t tell if this is a joke, or what… and why the fudge do they call Splash Damage a “Target”?

Also, I can’t believe I read 4 pages of this.

(XavienX) #8

[quote=“Eox;193696”]Lemme guess : the company is named Sumpo ?

Then you have no need to fear. It’s just basic business between companies. Sumpo probably is buying some rights from Splash Damage in order to distribute Dirty Bomb in China. The same basically happened with Warframe, where Sumpo bought some rights from Digital Extremes. The same old dev team will continue to work on Dirty Bomb. Nothing really shady is actually happening.

When this was announced on the Warframe Forums, a lot of people totally freaked out for basically nothing. I really don’t want to see the same thing happening here, so keep in mind the following : Dirty Bomb is SAFE ! No need to worry AT ALL. You’ll keep the same dev team and every single decisions taken for the game’s developpement will still remain to Splash Damage. Actually Splash Damage will probably get funds from Sumpo themselves, which is great.[/quote]

@Eox I wonder if China is gonna release like new mercs and guns and stuff designed by them and the forum is going to constantly ask for it like what happened with the Umbra Warframe, nunchucks and stuff.

(Eox) #9

[quote=“Xavien;193703”][quote=“Eox;193696”]Lemme guess : the company is named Sumpo ?

Then you have no need to fear. It’s just basic business between companies. Sumpo probably is buying some rights from Splash Damage in order to distribute Dirty Bomb in China. The same basically happened with Warframe, where Sumpo bought some rights from Digital Extremes. The same old dev team will continue to work on Dirty Bomb. Nothing really shady is actually happening.

When this was announced on the Warframe Forums, a lot of people totally freaked out for basically nothing. I really don’t want to see the same thing happening here, so keep in mind the following : Dirty Bomb is SAFE ! No need to worry AT ALL. You’ll keep the same dev team and every single decisions taken for the game’s developpement will still remain to Splash Damage. Actually Splash Damage will probably get funds from Sumpo themselves, which is great.[/quote]

@Eox I wonder if China is gonna release like new mercs and guns and stuff designed by them and the forum is going to constantly ask for it like what happened with the Umbra Warframe, nunchucks and stuff.[/quote]

Umbra Proxy confirmed.

#WarframePrivateJokes

(dukemaroon) #10

As is implicitly stated in the aforementioned document, this purchase was not for shares or rights, it was a complete and full purchase of the company in question. In no way was there any mention of acquisition of rights. And even if it was for rights, my guess is that they wouldn’t have gone through Splash Damage. They would have gone through the publishers, Nexon. This purchase was of Paul Wedgwood’s companies.

Now, this doesn’t mean that there’s any reason to panic or worry about the state of the game. But it does mean that we can probably expect change coming within the next few months. As is stated on the top of page 4, they will be required to give out more information on or before July 29, 2016. I’m sure we’ll hear more about it then.

Because it is a full, complete acquisition of the companies in question, this does not mean that the development team will stay the same. They have full discretion, on any/all decisions made, so if they wanted to (which I’m sure they don’t), they could replace the entire development team at Splash Damage with a team of their own.

(Terminal_6) #11

This reminds me of when Sony Online Entertainment was sold to… I don’t remember who. Whoever they are, people started blaming them for every buff and nerf in Planetside 2, and to this day many people don’t understand that most of the renamed Daybreak Game’s employees are “former” SOE employees, because it’s the same company.

That being said there was a round of lay-offs after the acquisition because PS2 was barely turning a profit at that point. Not to scare anyone about this, I don’t know anything about SD or Nexon’s finances.

(Ardez1) #12

Does this mean we might get warframe stuff as trinkets? :slight_smile:

My real question is how does this impact the contract between Nexon and SD? My belief is that it won’t for the immediate future and the game will operate as normal. My long term hope is that they invest is DB more to increase the development team and focus optimization and overall game quality while bringing out more trinkets and skins to drive revenue.

But, we don’t have enough information. We also don’t know if it simply means they will focus on other SD products more. I can dream.

(blonk) #13

I’m not sure that they can, though reading this document is very much like that time my goldfish escaped from the submarine that was exploring the Mariana Trench - a bit out of my depth. This bit:

The Earn-Out Consideration is subject to, among others, the following protections:
(a) the Targets shall carry on their business in the ordinary course for the benefit of the Targets;
(b) Radius Maxima shall allow Paul Wedgwood in his capacity as the chief executive officer to exercise day-to-day operational management control of the Targets in accordance with the terms of Paul Wedgwood’s employment agreement and certain guiding principles of
the Targets reflected in the Main SPA;
© none of the Targets will be wound up unless it is insolvent; and
14
(d) save in the ordinary course of business or with the consent of Paul Wedgwood (not to be unreasonably withheld if in the best interests of the Targets), none of the Targets shall sell, transfer or otherwise dispose of all or a material part of its business, assets or undertaking (or enter into an agreement to do so).

Seems to suggest that there should be practically no difference as Paul will still be CEO. Whether or not any changes higher up will affect SD’s budget at the likes, who can say, but from reading that I wouldn’t have thought there’d be staff changes.

Part of me wonders if this isn’t the kind of thing that might happen all the time with small-medium companies and only the wonders of the current age allow us to even be aware of it.

(The_N00Ba) #14

Hopefully if this is true it works out well for everyone. :slight_smile:

(pumpkinmeerkat) #15

Hopefully SD can explain when they get the chance…

(asparagusMist) #16

well seeing as we haven’t heard anything official yet people will just make up things or guess at whats happening.

we could do with someone in the know talking about what if any implications this has for the game we love to play.

there are numerous articles out now.so its more than a rumour so can someone please explain how if at all it effects us the players.cheers.

(Icecoal) #17

So sumpo is buying rights from gaming companies, to make money of it to invest it in their poultry business ?

(AlphaUT) #18

I jsut saw someone posted the document before LOL so

“Delete”

(Ohsnapkline) #19

[quote=“Ardez;193936”]Does this mean we might get warframe stuff as trinkets? :slight_smile:

My real question is how does this impact the contract between Nexon and SD? My belief is that it won’t for the immediate future and the game will operate as normal. My long term hope is that they invest is DB more to increase the development team and focus optimization and overall game quality while bringing out more trinkets and skins to drive revenue.

But, we don’t have enough information. We also don’t know if it simply means they will focus on other SD products more. I can dream.[/quote]
I would very much like warframe loadouts. on another note I wouldn’t like warframe to be so grindy

(AlphaUT) #20

I actually just found this

The Consideration shall be allocated in the following proportions:
(a) 65% of the Consideration for the Splash Damage Shares and the Splash Damage Option
Shares;
(b) 25% of the Consideration for the Fireteam Shares and the Fireteam Option Shares; and
© 10% of the Consideration for the Warchest Shares and the Warchest Option Shares