For a multi billion dollar company...

[Spinseeker]

Just cause SoftBank bought 51% for 1.5 billion doesn't exactly mean that they are WORTH that much as far as assets. I believe they are worth tons of money, but SoftBank was just gambling by throwing 1.5b for majority stake hoping in return they would make their money back in a few years. Assuming supercells revenue is $2.4m/day thats $876 million a year, not including all their expenses. I personally think SoftBank overvalued the company but I am sure they will still make out in the end.

Put it this way, Apple's revenue is $183b, however their assets are only $231b(not including all the cash they are sitting on). That's about a 21% of the difference between revenue and assets. Meaning if you applied this to supercell based on their revenue, their total assets would be a little above $500,000 million.

I only write this because I use to fiddle around in the stock markets and I know how misleading a company's "worth" can be. I have lost a good amount of money because I myself overvalued specific companies. Oh well.

Don't get me wrong. I believe they ARE worth more than $500,000, however calling them a "multi-billion" dollar company is kind of a stretch. Hypothetically speaking supercell could put out the worst update of all time that would get EVERYONE to stop playing tomorrow. Then what? Then SoftBank would have been better off buying a 1.5b dollar paperweight, because they would have gotten more use out of it.

What determines what anything is worth? Not assets, although they usually play a factor.
What determines something's worth is what someone is willing to pay for it. This worth can fluctuate rapidly depending on many factors as your stock portfolio likely reflected.

At the time SoftBank bought 51% of the shares, supercell was worth just over $3b based on the only thing that determines worth - what someone was willing to pay for it.

[GETNDATCUDIBOY]

What determines what anything is worth? Not assets, although they usually play a factor.
What determines something's worth is what someone is willing to pay for it. This worth can fluctuate rapidly depending on many factors as your stock portfolio likely reflected.

At the time SoftBank bought 51% of the shares, supercell was worth just over $3b based on the only thing that determines worth - what someone was willing to pay for it.

While I agree with everything you say, you cannot tell me I am "wrong" based on the facts I presented.

While it is true that a company's worth is what someone is willing to pay for it, that can only go so far. What determines the worth of a company are the following: revenue, operating income, net income, equity and ofcourse most important of all, assets. When a company, or even an individual tries expanding or opening a business most lenders/franchisers will ask to see proof of all liquid assets, they will then give an approximate estimate as to how much you are "worth" based on liquid assets. It's how the world works.

At at the end of the day, a company IS worth what someone will pay for it. I would personally pay $1000 for Zlatan Ibrahamovic to take a dump in a shoebox and fedex it to me. To you, a piece of Zlatan poo might not be worth anywhere near what I am willing to pay. Does that mean that he is dropping a grand every time he dropping a deuce though? I'll let you decide...

[LordAmbreon]

FYI- They have addressed the time bug and said they will not be fixing it because they would have to rewrite the games code from scratch.

Lol that's complete ♥♥. Even with my limited coding knowledge I know it doesn't work that way.

[SirFireRage]

they have millions of people msging them a day

[LordAmbreon]

they have millions of people msging them a day

And even though they make however many millions per day can't hire more people? Microsoft can, and I imagine they get waaaay more messages than supercell....

[TheWompyOverlord]

You have to keep in mind they probably receive hundred of emails every day with people complaining about things like loot or other topics that don't deserve an actual human response. So they have incorporated the automatic response.

Just be patient, they will fix the switching account issue when they know how.

[AxionXD]

Just cause SoftBank bought 51% for 1.5 billion doesn't exactly mean that they are WORTH that much as far as assets.

Whether or not they have assets in the multi billions, their companies overall value is evaluated at 3 billion by that acquisition. Im sure SoftBank did their due diligence before offering and paying that much for 50%. Which means everything, not just their assets but their EBITDA and other factors play into the valuation of the company.

For softbank, they see a 400m potential ROI a year, allowing their investment to pay off in 3 years where a possible 400 million profit could arise. Id say thats a pretty solid investment. It's definitely a gamble, but i see no problem in considering them multibillion even if its at the low end of such a designator Apple is clearly well into that designator at triple digit billions.

[JZ600]

You have to keep in mind they probably receive hundred of emails every day with people complaining about things like loot or other topics that don't deserve an actual human response. So they have incorporated the automatic response.

Just be patient, they will fix the switching account issue when they know how.

My inquiry has nothing to do with that. Lost access to my mini which i spent a little money on

[GETNDATCUDIBOY]

Whether or not they have assets in the multi billions, their companies overall value is evaluated at 3 billion by that acquisition. Im sure SoftBank did their due diligence before offering and paying that much for 50%. Which means everything, not just their assets but their EBITDA and other factors play into the valuation of the company.

For softbank, they see a 400m potential ROI a year, allowing their investment to pay off in 3 years where a possible 400 million profit could arise. Id say thats a pretty solid investment. It's definitely a gamble, but i see no problem in considering them multibillion even if its at the low end of such a designator Apple is clearly well into that designator at triple digit billions.

Their "overall value" is determined only by SoftBank. They definently don't have the numbers to back them up on that figure. I do however agree with everything else you mentioned as far as the ROI, EBITDA and the fact that they are gambling. Consider this though...


In 2009 a company by the name of Solyndra became public. It was something was going to sorta revolutionize solar energy. The first year, they made $100 million. The second year they went up 50% and had 10 major investors dump hundreds of millions of dollars into the company thinking that it would make them mucho money and gave the company an "overall value" of nearly 2 billion dollars. The following year they went bankrupt. The company is no more and all the investors lost their money. That's just one example of many where a company was overvalued by investors with fat pockets.

Back then I was actually one of those guys that knew Solyndra was doomed from the start. I knew it wouldn't succeed, and I knew it wasn't worth more than half a billion dollars. So that when all my friends were telling me to jump on the bandwagon, I didn't. I was the one that said "told ya so".

I'm not saying that supercell will go bankrupt. I just know numbers, and I know the company is NOT worth $3 billion. Not even close.

[bradleytjohnson1]

Multi billion? U high bro?