MS bought studios that were either small/struggling/worked with before. Insomniac fits none of these criteria.
MS bought studios that were either small/struggling/worked with before. Insomniac fits none of these criteria.
How do we know they didn't? How do we know they didn't offer $400m? Not always about money. For a long time Insomniac didn't want to be bought.
Yep it's more of an investment in talentThat really is a steal. Compared to the $350m MS paid for Rare in 2002 for example.
But Insomniac owned little of its own IP. FUSE and Sunset Overdrive aside. So little value there which may be why so cheap.
One of my favourite developers and a great move for both parties IMHO.
Uh... theyve worked with them before.....MS bought studios that were either small/struggling/worked with before. Insomniac fits none of these criteria.
That seems low? I guess cause they don't really own IP and it would just be the building, studio, engines and stuff?
a Public company may cost more (350+M)So an acquisition of remedy will probably cost at least as much as insomniac if not more, yea safe to say it won't be happening until after they make a game together
Is that a better question?
You seem to have answered it in the same breath.
If you're making the point that they have different value to different publishers, and a higher value to Sony than to others, then I agree. That's the only value that matters for this transaction, though.
They both got lucky. Considering Spider-Man went on to become the fastest selling PS4 game, Insomniac would have made a huge mistake leaving that behind after the success they just had with Sony. Think of how much money Spider-Man has made, and will make again in the future. They're going to be swimming in money.
Companies don't benchmark selling at double their current public price. Some do, but the vast majority do not. That would imply a very large debt balance and significant control premium. I could very well see pricing Remedy for around what was paid for Insomniac.a Public company may cost more (350+M)
iirc Matt said before Public Company sell at twice their current price..
so i don't think Sony or Microsoft will go for them and maybe work on exclusive contracts which will be cheaper
The TitanFall IP is bigger than Ratchet & Clank or any other IP owned by Insomniac.That's lower than Respawn and Insomniac was way bigger at that time and with more IPs.
On one game that wasn't successful out of many Insomniac worked on. I meant studios like PG or Undead Labs which are associated with MS.
The studio.
Not likely. Disney shut down most if not all of their gaming divisions. I believe even recently they handed over a gaming project to someone outside Disney. They don't want the headaches of game publishing.Something tells me Disney tried to go around Sony and just buy Insomniac? And Sony did the smart thing and locked them down.
i'm not expert and read only about it but remedy owns IP and engine and both won't be cheapCompanies absolutely do not benchmark selling at double their current public price. Some do, but the vast majority do not. That would imply a colossal debt balance and significant control premium. I could very well see pricing Remedy for around what was paid for Insomniac.
The TitanFall IP is bigger than Ratchet & Clank or any other IP owned by Insomniac.
The TitanFall IP is bigger than Ratchet & Clank or any other IP owned by Insomniac.
That and their VR IPsIsn't Sunset Overdrive the only IP they owned anyway? That was the reason they took a step back from Sony in the first place, they were vulnerable due to having nothing to their name .
They owned Fuse, Song of the Deep and a whole bunch of VR titles.Isn't Sunset Overdrive the only IP they owned anyway? That was the reason they took a step back from Sony in the first place, they were vulnerable due to having nothing to their name .
That's fair; I adjusted my post to be a little less...bombastic.i'm not expert and read only about it but remedy owns IP and engine and both won't be cheap
but again i'm not expert so that's why i Taged Matt
That's much less than I thought it would be. A sequel to Spiderman can get most of if not all of the investment back.
They owned Fuse, Song of the Deep and a whole bunch of VR titles.
I wonder if Insomniac has any regerts. $229 seems like they were lowballed.
Ah, got it. Sorry, I didn't read it that way initially.Dozens of posters have expressed their surprise at the low acquisition price. My point is that Insomniac has not experienced great success outside of its partnership with Sony. Thus, they are more valuable to Sony than other publishers on the market. However because of this fact, Sony doesn't need overpay for their services or their IPs. They aren't really competing with anyone else but themselves.
How do we know they didn't? How do we know they didn't offer $400m? Not always about money. For a long time Insomniac didn't want to be bought.
Ah Fuse, forgot about that one.
Maybe we'll get a Sequel on PS5
Do you have access to some specific data or public available info from past transaction?For those wondering, M&A valuations are typically either a multiple of some baseline financial metric (ie, X times revenue/Y times EBITDA; Y>X; for classical games studios, I've seen X be around 5-9) or a more complicated formula based on projected future earnings and capital structure. While something higher wouldn't have been shocking, I'm also not too surprised to see this price.