Posted June 26, 2022
Greetings
Lets start by saying i'm quite oblivious and unskilled about the inner workings of big businesses and market practices, but i had a nasty surprise the other day while playing:
My company had an estimated worth of 1.5 billions somehow, and i had 900 millions in ready-to-use cash.
I also gradually over monthes purchased up to 90% of a competitor (so, 90 000 shares of it)
the more shares i would buy and own of this competitor, the lower and lower the studio's estimated worth would drop
at the point of the event that puzzled me, the competitor's worth was around 85 millions, and the share's price was around 14.5$ (which means roughly 1.3 billions of shares's total worth)
and THEN: i receive a mail from a big competitor (one that is listed with a worth of 260 millions) and here is what the mail was saying, roughly:
"Hello, we want to purchase (name of the small competitor) but we cannot do that without reaching you as you own a signidficant amount of shares of said company.
Here is the deal: we give you (money amount x) for all your shares as a non negotiable offer and you get out of the picture and we purchase said competitor so that you dont have to keep bothering about handling it yourself anymore, pretty neat, uh ?
If you refuse, we go to court and our lawyer's fee will be of (huuuuge amount of money y)... XOXO"
My problem is that money amount x was 7336$ (so it wasnt a coma misplacing or a typo or a shortened display of my 90 000 shares's current worth)
My other problem was that lawyer robbery/extortion money amount y was... 135 millions !!!
What is the logic here ? Is it how businesses are really working ?
I mean you own 1.3 billions worth of something and someone comes in and request you to give him 1.3 billions worth for a mere 7.3 k or will legally rob you off 130 millions in court if you refuse ?
IRL is someone rings my door with such ludicrous final offer "deal", i'd ask 'ma to bring me the shotgun and would tell the twat to get of my lawn.
so question 1: is this all logical or making any sense given the method, and the amounts ?
quesiton 2: how do you purchase a competitor completely ? (i mean aside from purchasing shares)
I mean: a) you can only buy 20% worth of shares at a time (which makes the value rise instantly, which seems logical... so there is no option to put your big fat cash on the table and purchase 100% of the shares in one go) and b) how can you purchase a compêtitor for it's current total worth instead ? and c) is the AI "cheating" somehow by being allowed to purchase a competitor in a whole in a single shot ?
thanx for answers
Lets start by saying i'm quite oblivious and unskilled about the inner workings of big businesses and market practices, but i had a nasty surprise the other day while playing:
My company had an estimated worth of 1.5 billions somehow, and i had 900 millions in ready-to-use cash.
I also gradually over monthes purchased up to 90% of a competitor (so, 90 000 shares of it)
the more shares i would buy and own of this competitor, the lower and lower the studio's estimated worth would drop
at the point of the event that puzzled me, the competitor's worth was around 85 millions, and the share's price was around 14.5$ (which means roughly 1.3 billions of shares's total worth)
and THEN: i receive a mail from a big competitor (one that is listed with a worth of 260 millions) and here is what the mail was saying, roughly:
"Hello, we want to purchase (name of the small competitor) but we cannot do that without reaching you as you own a signidficant amount of shares of said company.
Here is the deal: we give you (money amount x) for all your shares as a non negotiable offer and you get out of the picture and we purchase said competitor so that you dont have to keep bothering about handling it yourself anymore, pretty neat, uh ?
If you refuse, we go to court and our lawyer's fee will be of (huuuuge amount of money y)... XOXO"
My problem is that money amount x was 7336$ (so it wasnt a coma misplacing or a typo or a shortened display of my 90 000 shares's current worth)
My other problem was that lawyer robbery/extortion money amount y was... 135 millions !!!
What is the logic here ? Is it how businesses are really working ?
I mean you own 1.3 billions worth of something and someone comes in and request you to give him 1.3 billions worth for a mere 7.3 k or will legally rob you off 130 millions in court if you refuse ?
IRL is someone rings my door with such ludicrous final offer "deal", i'd ask 'ma to bring me the shotgun and would tell the twat to get of my lawn.
so question 1: is this all logical or making any sense given the method, and the amounts ?
quesiton 2: how do you purchase a competitor completely ? (i mean aside from purchasing shares)
I mean: a) you can only buy 20% worth of shares at a time (which makes the value rise instantly, which seems logical... so there is no option to put your big fat cash on the table and purchase 100% of the shares in one go) and b) how can you purchase a compêtitor for it's current total worth instead ? and c) is the AI "cheating" somehow by being allowed to purchase a competitor in a whole in a single shot ?
thanx for answers
This question / problem has been solved by binogure
