It covers everything we know at that point and discusses what might happen next. 30 minutes.
Summary from the show (curtesy of Co-Pilot)
CCP Games Sale: Pearl Abyss is reportedly seeking a buyer for CCP Games, the developer of Eve Online, amidst the development of new titles like Vanguard and Frontier. Leaked in Korean press.
Pearl Abyss Acquisition: Pearl Abyss acquired CCP in 2018 for $225 million, with an additional $200 million contingent on performance targets that were not met.
Financial Losses: CCP has only been profitable in one year since the acquisition, incurring a total loss of $56 million alongside a $50 million write-down.
Potential Buyers: Possible buyers include Chinese companies like Tencent and NetEase, although scepticism surrounding crypto in China could complicate matters.
Market Reactions: The timing of the sale news has raised questions about Pearl Abyss's confidence in CCP's future or perhaps Pearl Abyss needs to raise cash.
What would someone pay?: CCP made EBITDA (earnings before interest, tax, depreciation and amortisation) losses of $12m in 2024. Eve Online made revenues of $55-60m, lets assume 10% ebitda margins (feels low) and use a market multiple of 25x = $150m, less the $50m debt they owe to Pearl Abyss = $100m. And then still to think of the loss making parts.
Future of Eve Online: Eve Online is expected to remain operational, with potential changes in revenue strategies.
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