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General discussion (archive)CD Projekt to the stocks?(29 posts)(29 posts)
(29 posts)
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This is my favourite topic
Posted October 02, 2009
For those who are interested. I was just reading my daily gamasutra when I saw that CD Project has been acquired by another Polish company - although it seems it may just be a case of getting the company to go public on the stockmarket with less hassle than an acquisition per se.
Read the rest here
Posted October 02, 2009
I'm not an economist... but that means CDP is in a good condition financially, right? I hope this move can attract more publishers to join GOG's catalog. :)
Posted October 02, 2009
Huh, interesting move. Basically CD Projekt agrees to be bought by another company, Optimus S.A. However, the sale is paid for by Optimus S.A. using their company's stock. But the amount of stock that is paid results in the owners to CD Projekt now owning the majority of the stock for the resulting merged company, thus being the primary shareholders (basically the de facto owners). Interesting bit of financial maneuvering. With regards to what this means for CD Projekt, while I'm no market analyst it would seem to me that becoming a publicly traded company opens up additional ways that CDP can raise money to fund their various projects, indicating that they're probably using this acquisition as a stepping stone to help expand their operations.
Posted October 02, 2009
So now Optimus owns CD Projekt, and as a direct result of that, CD Projekt owns Optimus? Which owns CD Projekt... Which owns Optimus... Aaaargh! Infinite loop!
Still it appears to be a sign that CD Projekt is moving up in the world.
Posted October 02, 2009
A cunning plan. It's good to see that at least someone in the games industry actually has business sense as well. This should be good for GOG.
Posted October 02, 2009
If this helps stabalize CD Projekt and makes The Witcher 2 a better game, and GOG a even better site, then this is exciting.
Posted October 02, 2009
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Wishbone: So now Optimus owns CD Projekt, and as a direct result of that, CD Projekt owns Optimus? Which owns CD Projekt... Which owns Optimus... Aaaargh! Infinite loop!
Still it appears to be a sign that CD Projekt is moving up in the world.

"We buy you, by giving you partial ownership of us?" Yeah, makes sense... almost.
Posted October 02, 2009
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DarrkPhoenix: Huh, interesting move. Basically CD Projekt agrees to be bought by another company, Optimus S.A. However, the sale is paid for by Optimus S.A. using their company's stock. But the amount of stock that is paid results in the owners to CD Projekt now owning the majority of the stock for the resulting merged company, thus being the primary shareholders (basically the de facto owners). Interesting bit of financial maneuvering. With regards to what this means for CD Projekt, while I'm no market analyst it would seem to me that becoming a publicly traded company opens up additional ways that CDP can raise money to fund their various projects, indicating that they're probably using this acquisition as a stepping stone to help expand their operations.

100% correct. Current owners of CDP Group will become owners of majority stake in new entity (publicly listed). It means basically more options of financing further grow of our company. The one thing needs to be clarified. We've signed so far only letter of intend. Final agreement is due to be signed to the end of the month.
Post edited October 02, 2009 by Mikee
Posted October 02, 2009
any major changes?
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Navagon: A cunning plan.
I much prefer a punning clan!
Post edited October 02, 2009 by Weclock
Posted October 02, 2009
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DarrkPhoenix: Huh, interesting move. Basically CD Projekt agrees to be bought by another company, Optimus S.A. However, the sale is paid for by Optimus S.A. using their company's stock. But the amount of stock that is paid results in the owners to CD Projekt now owning the majority of the stock for the resulting merged company, thus being the primary shareholders (basically the de facto owners). Interesting bit of financial maneuvering. With regards to what this means for CD Projekt, while I'm no market analyst it would seem to me that becoming a publicly traded company opens up additional ways that CDP can raise money to fund their various projects, indicating that they're probably using this acquisition as a stepping stone to help expand their operations.
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Mikee: 100% correct. Current owners of CDP Group will become owners of majority stake in new entity (publicly listed). It means basically more options of financing further grow of our company. The one thing needs to be clarified. We've signed so far only letter of intend. Final agreement is due to be signed to the end of the month.

It also turns CD Projekt into a publicly traded company without having to go through the IPO process, which can be long, expensive and have uncertain returns. The down side is that there are now financial statement filings that need to be made on a regular basis, if the Polish stock market is anything like the U.S. stock market.
Posted October 02, 2009
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Weclock: any major changes?
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Navagon: A cunning plan.
I much prefer a punning clan!

Maybe when CD Projekt take stock of the situation, they'll help us form one!
Posted October 02, 2009
My guess is they're unhappy with the publishing terms they have been offered on Witcher 2, and therefore are looking to raise more money themselves to either publish the game on their own or be in a position to dictate a better publishing agreement.
Also, with more money comes the ability to expand operations and have more control over your own content, instead of having to outsource and leaving the potential for mistakes (a la the witcher port).
I will not be surprised if Witcher 2 is both developed AND published by CD-K, or they use a one time agreement with someone else only for retail.
Posted October 02, 2009
Heheh.... "Optimus".
Posted October 02, 2009
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Mikee: Huh100% correct. Current owners of CDP Group will become owners of majority stake in new entity (publicly listed). It means basically more options of financing further grow of our company. The one thing needs to be clarified. We've signed so far only letter of intend. Final agreement is due to be signed to the end of the month.

Oh I do hope that only 49% of the stock is ever going to be sold to the public, the last thing we want is to have CDP sold off to EA because some random yahoos want some beer money for the weekend. They'd probably change Good Old Games into Good New Overpriced Sims 3 Addons, if nothing else GNOS3A doesn't really roll off the tongue, even if you do the 3 as an E
Post edited October 02, 2009 by Aliasalpha
Posted October 02, 2009
So, from this acquisition details, it sounds more like CDP acquired optimus instead. Which sounds great, I'd prefer that over Activision or EA buying CDP.
Post edited October 02, 2009 by drmlessgames
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General discussion (archive)CD Projekt to the stocks?(29 posts)(29 posts)
(29 posts)