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Jagex now a U.S. company


Ashoke

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"Jagex is trading up the Union Jack for the Stars and Stripes, as controlling interest in the studio has changed hands to a US firm.

 

Insight Venture Brothers, a venture capital firm from the US, completed a deal last year to increase its ownership to 55% of the UK-based company. Previously, the firm had 35% interest in Jagex. Now that the scales have tipped to the new ownership, this technically makes Jagex a US-controlled company and has US investors leading its board of directors.

 

While revenues were up 2% for Jagex in 2011, both operating and net profits were significantly down from the previous financial year. Jagex is a major player in the MMO free-to-play market, with RuneScape, Transformers Universe, and 8Realms as part of its project portfilio.

 

Develop reports that the controlling interest was made possible by Jagex co-founder Andrew Gower selling off his ownership claims to the firm for $115.65 million. As part of the deal, Jagex paid $3.85 million in expenses. The studio will remain in Cambridge while its controlling firm is in NYC."

 

Source: http://massively.joystiq.com/2012/01/09/god-save-the-green-deal-makes-jagex-a-us-company/

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This doesn't mean anything.

Jagex offices are still in Cambridge and its staff are still British for the most part, so its a UK company.

 

And it is really old news.

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But does it matter that 55% of the shareholders are in the U.S.? Does it mean a change in updates?

 

 

Well, some argue that it does, seeing that this happened right before the referendum, some people do, but I'm not convinced tbh. It's possible that the marketing schemes that have been happening is due to this, but anything else I believe is still in the hands of Jagex themselves.

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Interesting:

 

http://www.insightpartners.com/team/view/investment

 

Insight Partners are also shareholders in Nexon -- the makers of Maple Story ...

MapleScape?

(I cringed a little bit just typing that. :???: )

 

I wonder if they'll try and push microtransactions for RuneScape like they have in MapleStory?

 

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The only thing i can see this changing would be the moving of company location. If more owners are working outside of the UK then from a business perceptive it might be better to move the company/business to them. If that was to happen then timing within the game would change to a USA based time zone. Asides from that it wouldn't have any impact within RuneScape itself

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The only thing i can see this changing would be the moving of company location. If more owners are working outside of the UK then from a business perceptive it might be better to move the company/business to them. If that was to happen then timing within the game would change to a USA based time zone. Asides from that it wouldn't have any impact within RuneScape itself

Huh, why? So hundreds of people from Jagex have to move over the sea because some of the big guys are there? How does that make any sense?

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Interesting:

 

http://www.insightpartners.com/team/view/investment

 

Insight Partners are also shareholders in Nexon -- the makers of Maple Story ...

 

I threw up in my mouth a little bit.

 

Ummm...why does it matter? Those investors are only in the business side of things...

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The only thing i can see this changing would be the moving of company location. If more owners are working outside of the UK then from a business perceptive it might be better to move the company/business to them. If that was to happen then timing within the game would change to a USA based time zone. Asides from that it wouldn't have any impact within RuneScape itself

Huh, why? So hundreds of people from Jagex have to move over the sea because some of the big guys are there? How does that make any sense?

 

Yeah investors/financial owners don't need to be on site and as Jay pointed out it would put far more things out of joint to try and move the entire company and its few hundred employees over seas just because of a couple of investors.

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The only thing i can see this changing would be the moving of company location. If more owners are working outside of the UK then from a business perceptive it might be better to move the company/business to them. If that was to happen then timing within the game would change to a USA based time zone. Asides from that it wouldn't have any impact within RuneScape itself

Huh, why? So hundreds of people from Jagex have to move over the sea because some of the big guys are there? How does that make any sense?

 

Yeah investors/financial owners don't need to be on site and as Jay pointed out it would put far more things out of joint to try and move the entire company and its few hundred employees over seas just because of a couple of investors.

Sy and Bi are right. Insight is an investment firm that manages a 3 billion dollar portfolio. I doubt they'd try to relocate the HQ's of every company they hold stock in.

 

Also, their managing director has a MBA from MIT. OMG. :lol:

 

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investors?

 

Nothing good ever comes from such scum... They hold companies for no other reason that QUICK money, even though the name implies they invest to have a return at a later time, they never look 20 years ahead.

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Then they came to the yews

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Then they came for the ores

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Then they came for me

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investors?

 

Nothing good ever comes from such scum... They hold companies for no other reason that QUICK money, even though the name implies they invest to have a return at a later time, they never look 20 years ahead.

 

The name doesnt imply anything of the sorts.

Financing - getting money from somewhere to do shit.

Investing - giving money to someone to do shit or using the money to do some shit yourself and getting some profit out of it.

 

There is no longterm implied in investing

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this information means absolutely nothing.

Absolutely nothing?

 

Right when these investors stepped in early last year is when we started to see the introduction of the Refer a Friend, Loyalty Points, in-game items w/game card stuff, etc...

I don't have any experience in the gaming business but I do know something as a recording artist, and that is the people who finance you (your board of directors, your publishing house, your record label) have the final say. If your music isn't poppy enough, isn't metal enough, upbeat enough, etc... guess what? Your music is going to be poppy'er or more upbeat or whatever they want.

 

Control over the direction of your art doesn't just mean something, it means everything.

No snowflake in an avalanche ever felt responsible.

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investors?Nothing good ever comes from such scum... They hold companies for no other reason that QUICK money, even though the name implies they invest to have a return at a later time, they never look 20 years ahead.
The name doesnt imply anything of the sorts.Financing - getting money from somewhere to do shit.Investing - giving money to someone to do shit or using the money to do some shit yourself and getting some profit out of it.There is no longterm implied in investing

 

It would be one thing if they were simply investing. However, these same investors are on Jagex's Board of Directors, which does imply and enable a bit more.

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Control over the direction of your art doesn't just mean something, it means everything.

Isn't the reality for the vast, vast majority of artists (namely, all but the very big guns) that they have only partial control over what stuff they record and release, though? When you're taking someone else's coin, they get to request the tune. That's the way art has always worked for the vast majority of artists.

 

I'm not going to burst an artery over this. They'd be foolish to tamper with RuneScape too much. The game doesn't seem to be doing a truly fantastic job of attracting new blood or generating potential interest so they'll need to keep the customers they've currently got onside. That's why so many updates in the the game's recent history have been high-end content, bluntly aimed towards people who've stuck around for year after year.

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It depends on the Label, Publishing house, etc, and what kind of contracts they have. One particular favorite artist of mine was lucky enough to take full control over their releases in exchange for a lower cut of their record sales.

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$115M for a game that has an gross revenue of < $50M (circa 2009-2010 numbers)? Yeah, I'd probably take that deal, too.

 

It's an unfortunate turn of events, but really it's nothing new. If anything, it's only cementing what everyone here already assumed - Mr. Gower sold his share, and left the company in the care of these "nice businessmen", who are investing wonderful things into RuneScape and their other products, such as FunOrb, Stellar Dawn, 8Realms, and Herotopia.

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While revenues were up 2% for Jagex in 2011, both operating and net profits were significantly down from the previous financial year.

Not sure if I should panic.

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