How would you feel about zenimax/bethesda purchasing valve

  • Topic Archived
You're browsing the GameFAQs Message Boards as a guest. Sign Up for free (or Log In if you already have an account) to be able to post messages, change how messages are displayed, and view media in posts.
  1. Boards
  2. Dota 2
  3. How would you feel about zenimax/bethesda purchasing valve

User Info: Annuit_Coeptis

Annuit_Coeptis
3 weeks ago#21
companies are only worth what people think they're worth. and not even what the smart people who go to shareholder meetings think they're worth, just average joe shareholder who's holding it for his pension or something

if the SEC didn't come after you immediately, you could do it today by starting a believable rumor about a company, and waiting for its price to tank before making a purchase. even if you know the rumor is untrue, it's rational to sell shares if you believe that other people will believe it to be true

User Info: xoAxelox

xoAxelox
3 weeks ago#22
starting a believable rumor lol

you make it sound so easy

the market can be stupid sometimes but i think the average shareholder is actually moderately intelligent
PSN: axeei
NNID: sayevan

User Info: Annuit_Coeptis

Annuit_Coeptis
3 weeks ago#23
it is easy. people don't do it because they'd get arrested, not because it's hard. i could bash down a store door and steal everything tonight, it's not hard, i just know i'd probably get arrested. same principle

but that's not the point anyway. the point is that just announcing you were taking a company over in a corporate raid was enough to drive the price down, which would allow you to buy it for less money than its total assets

User Info: Annuit_Coeptis

Annuit_Coeptis
3 weeks ago#24
today the price of shares generally goes up after someone announces an acquisition because the shareholders know that people will want to buy their shares in order to have control of the company

but if you know your share is going to tank in price after the acquisition because of past corporate raids, and you know that everyone else knows, then it's in your best interest to sell now at a discount before everyone else sells too, so it becomes a self-fulfilling prophecy

User Info: Annuit_Coeptis

Annuit_Coeptis
3 weeks ago#25
i'm not an economist but as far as i understand it worked a little like this (completely wrong and made up) example

-company's shares are at $60, total assets are worth $55/share (but no one knows this information for sure)
-sell junk bonds worth $40 each to finance purchase of company
-announce you're trying to do a hostile takeover
-some shareholders sell in a panic, lowering the share price to $40
-now you buy a majority stake in the company using the money raised from bonds
-sell all the company's assets at $55, use $45 of the profit to pay off bonds
-all the company's shares (a lot of which you own) are now worth $1 because you gutted it
-net result: you've made a $10 profit, bondholders made a $5 profit, people who didn't sell their shares are left with a -$59 loss and kill themselves or something
-repeat the process. next time it's even likelier that shareholders will panic sell and drive the price down even further, because if they don't their shares are worth nothing

User Info: xoAxelox

xoAxelox
3 weeks ago#26
spreading a rumor attempting to convince thousands of shareholders that some bad **** is going on is completely different than robbing a store

whats your medium going to be? how are you even going to accomplish it and spread this message? are you even credible? will people listen to you?

idk maybe im overestimating how hard it is
PSN: axeei
NNID: sayevan

User Info: Annuit_Coeptis

Annuit_Coeptis
3 weeks ago#27
I distinctly remember this story:
http://www.nytimes.com/2000/09/21/business/sec-says-teenager-had-after-school-hobby-online-stock-fraud.html

I mean, if a 15 year old can do it...

User Info: xoAxelox

xoAxelox
3 weeks ago#28
thats 17 years ago though

people are much more knowledgeable about how the stock market works now

at least i think so? i would assume so considering how much more information on stock trading there is now and how certain companies are now very mature.
PSN: axeei
NNID: sayevan

User Info: Annuit_Coeptis

Annuit_Coeptis
3 weeks ago#29
no way, with social media nowadays you could f*** everything up royally. if anything it's worse. i guarantee if the SEC wasn't watching for it, people like jim cramer (sp?) would be giving s*** advice and unethically profiting

that's why i hate anyone who claims the market is rational and efficient. the subprime debacle was a prime example. the market is a bunch of greedy stupid f***s kept just this side of functional by a tread, with the SEC desperately trying to keep s*** together and failing. they can't even prosecute most white-collar crime because they're overworked

anyone who argues for less regulation and that the market will take care of itself should be kicked in the head
  1. Boards
  2. Dota 2
  3. How would you feel about zenimax/bethesda purchasing valve

Report Message

Terms of Use Violations:

Etiquette Issues:

Notes (optional; required for "Other"):
Add user to Ignore List after reporting

Topic Sticky

You are not allowed to request a sticky.

  • Topic Archived