Xbox thought Bethesda/Zenimax was worth $10.5B at the time of purchase but they acquired them for $7.5B
- Thread starter John Elden Ring
- Start date
What a steal! Unfortunately, they're worth less than insomniac. Sub 300 million.
Why else do you think they released Redfall in that state?Who ever the owner of zenimax was must be very happy to hear he could've got an extra 3 billion but got low balled by Microsoft & took it
I think you aren't understanding the meaning of the e-mail (same to the tweeter.) Zenimax itself was only worth 6.8 billion on its own but when combined with MS's existing assets the value of the Zeni portion would be worth 10.5 billion. The extra 4.7 billion only exists for Microsoft if they buy Zenimax, Zenimax doesn't see it while staying independent. Hence the deal was probably viewed as a good thing by both parties. Zenimax got an extra .7 billion over the company's existing value while Microsoft got an asset that instantly increased in value 2 billion above purchase price upon being sold.
These are some of the reasons why mergers happen and why companies are able to demand significantly more than their current worth when being acquired.
These are some of the reasons why mergers happen and why companies are able to demand significantly more than their current worth when being acquired.
Just to be sure, Insomiac Games annual revenues was 79 millions in 2022.
Zennimax, well 448 millions in 2020(Doom releases)
For 30 times less value, they produce 78 millions in 2022(the year without any big releases).
Bungie, around 400 millions in 2021.
I can see that it says operating cash flow + synergies but have no idea what they're on about
It means that they were being stupid as fuck. Basically they were counting on zenimax to continue having the same revenue as before, but also attracting customers to xbox/gamepass.I can see that it says operating cash flow + synergies but have no idea what they're on about
Normally it would mean crosspromotion and eliminating redundancies but yeah, I have no idea what they are on about. If anything it reduces their value since they are selling into a smaller market, even if their games already disproportionately hit PC and Xbox.
He actually died after selling to Microsoft. Phil got him while he was weak. Same MO as Kotick.Who ever the owner of zenimax was must be very happy to hear he could've got an extra 3 billion but got low balled by Microsoft & took it
Robert Altman, Video Game Mogul Who Survived Scandal, Dies at 73 (Published 2021)
He and his mentor, Clark Clifford, were caught up in a major financial fraud case. He later switched careers to lead the prominent game company ZeniMax.
