Author Topic: Star Citizen Breaking News  (Read 225199 times)

Aya Reiko

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Re: Star Citizen - Breaking News
« Reply #510 on: December 20, 2018, 12:36:36 PM »
The Truth:

Though 2017, CiG has only earned approx. $182.7 mil through pledges (so they claim).  And $12.7 come through subs.

I'd like to know how much is left?  My bets are on "somewhere around <$0" without loans to keep it afloat.

jham

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Re: Star Citizen - Breaking News
« Reply #511 on: December 20, 2018, 03:11:40 PM »
That "Letter from the Chairman" is such bullcrap! He makes it sound like he bumped into billionaire Clive Calder at the local Starbucks and they felt so much mutual love that they just had to go into business together.   :emot-lol:

dsmart

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Re: Star Citizen - Breaking News
« Reply #512 on: December 20, 2018, 04:52:38 PM »
That "Letter from the Chairman" is such bullcrap! He makes it sound like he bumped into billionaire Clive Calder at the local Starbucks and they felt so much mutual love that they just had to go into business together.   :emot-lol:

:emot-lol: you noticed too, huh? Remember back in Sept 2017 article where I said:

"Rumors and unconfirmed reports have been swirling for months that they’re running out of money to complete these projects, that they’ve been seeking external investor funding, trying to take advantage of tax credits etc. Even over in the UK, where reports like this come out, there is no evidence of them ever filing with the BFI if they did in fact take advantage of UK tax credits.  If they’re out trying to raise investor money, it should come as a complete shock to anyone who thinks that $112M should have been enough to, you know, develop the game as promised. All the negativity surrounding the game, the shitty and toxic community that has sprung up around it; the aforementioned videos of a shitty tech-demo (aka CryEngine mod) everyone is now laughing (1, 2) at, are collectively likely to affect any efforts to raise money outside of a bunch of gullible whales firmly entrenched in sunk cost fallacy and cognitive dissonance. Here’s the thing, any investor or investment banker looking to invest in a project which, for five years, has raised over $112M (that we know of) for a project that the creator was originally asking $2M from the public, should be doing extensive research into all the execs associated with this project."
« Last Edit: December 20, 2018, 04:54:50 PM by dsmart »
Star Citizen isn't a game. It's a TV show about a bunch of characters making a game. It's basically "This is Spinal Tap" - except people think the band is real.

Spunky Munkee

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Re: Star Citizen - Breaking News
« Reply #513 on: December 20, 2018, 10:07:47 PM »
Too bad backers cant distill whatever they are all on, they could become billionares. Forget anto depressants. These people only see pupppies and sunshine and deny any reality that might cloud their vision.

NEWS, Chris Roberts has lied to us for years. His schedules were lies, He lied denying that there were investors for years, He claimed that CIG was sitting in the black and had plenty of money to see things through to the end, and he lied in claiming there will never be investors at the onset.

What Backers See, Oh there is a new schedule and the game will be delivered next year! We have new partners to help us get the game out HORAY!

No anger that they were lied to, no suspicion that once again the schedule isnt more toilet tissue, no concerns that these new investors wont be looking for a serious return on investment via heavy monetization. What drugs are they on? Nobody invests many millions without taking some control. I am sure they wont want to be bought out. They will ensure that these hapless suckers are squeezed early and often. Lets just see how pricey ammo and repairs become. I guarantee that CIG will make EA and Bethesda look like angels. These guys wont even bother to spit on it before they stick it in.

Judge_dolly_OG

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Re: Star Citizen - Breaking News
« Reply #514 on: December 21, 2018, 12:42:42 AM »
Quote from: Spunky Munkee
I guarantee that CIG will make EA and Bethesda look like angels. These guys wont even bother to spit on it before they stick it in.

They already do make them look like angels. Can you imagine EA doing any of the predatory shit that CIG do? Only in their wildest dreams.

$200m raised from backers and the game is still not finished and will require more funds to get there. The whales are going to be getting milked and milked hard just to get it over the line, all for a game with no mass market appeal, what happens then? That's right more milking!

I keep thinking this story is going to go quiet for a while and I'll do following the action, then boom! Something happens...




Spunky Munkee

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Re: Star Citizen - Breaking News
« Reply #515 on: December 21, 2018, 05:46:06 AM »
Now I have to wonder that seeing how they have investors to take up the slack, will backers put their wallets away?

dsmart

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Re: Star Citizen - Breaking News
« Reply #516 on: December 21, 2018, 07:21:08 AM »
As I wrote in my updated article, the deal makes zero sense. That’s why standard and institutional investors and publishers have been blowing him off since 2017 as sources claimed back in Sept 2017.

But if you are familiar with investments, then you should already know about these two things which are certain to be how/why they did this deal.



The Liquidation Preference

When you invest real cash money in what could be charitably called a speculative venture, you typically agree on a higher valuation in exchange for protection on your investment – the liquidation preference

So if I invest $50 million in a company I think is only worth $100 million, and the seller would like the valuation to be $500 million, I might ask for an 4x LP as a condition of agreement.

What this means is that if the company sells for, $500 million, I will take my investment times four out first, before other owners – $200 million out of the $500 million. If the company sells for $100 million, I will take the entire $100 million, and other owners will go away with nothing.

The reason it’s called a preference is that often the investor who holds the LP clause can force management to sell when they would rather not – they can induce the liquidation of the firm whenever they want, more or less.

Convertible Notes

As an additional protection, the investment is usually convertible, from stock to debt, sometimes high-interest debt, at the investor’s choice.

The specific amount of debt is never less than the cash value of the investment. The interest rate is never 0. Exactly how big the debt, and how nasty the interest, is negotiated.

I expect that SC’s new investor has both these terms, plus quite a number of other ones, to protect their investment.

VCs put money into pretty crazy ventures, and they want either explosive growth, or a fast liquidation, so they can re-invest the money before their current fund closes. You’ll notice how both these terms point in that direction. (An LP is, obviously, a liquidation. Converting your note gives the firm huge incentive to either solicit new investment or borrow money from someone else to pay you off.)

So there’s someone out there that might have the ability to force cig into liquidation if they feel they won’t be able to get their 46 million back?

Essentially yes

The one-two punch of L.P. and convertibility means the investors are likely to shitcan the company the minute they don’t like the story

Bear in mind they will expect 500MM to 5B of return on their 50MM investment. That’s not a typo. 10x is a minimum. 100x is the target return on a successful VC investment.

If it doesn’t look like 10x returns are coming on a very short horizon, they will pressure management to raise more money to expand and improve the odds, or liquidate immediately.

VC doesn’t want to see you piddle along with a modestly successful business. Go to the moon, or eat shit and die. Nothing in between.

NOTE: For anyone who thinks this is a credulous music industry idiot meddling, do note that his board appointee is a Silicon Valley lawyer who specializes in VC. This deal passed his highly paid “family office” investors. They intend to get paid.
Star Citizen isn't a game. It's a TV show about a bunch of characters making a game. It's basically "This is Spinal Tap" - except people think the band is real.

N0mad

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Re: Star Citizen - Breaking News
« Reply #517 on: December 21, 2018, 07:52:03 AM »
Clearly they haven't realised how incompetent Chris Roberts is. If they aren't going to physically remove Chris from this project then they're never going to see a return on their investment.

DemonInvestor

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Re: Star Citizen - Breaking News
« Reply #518 on: December 21, 2018, 08:15:25 AM »
Maybe we're missing some taxation rules - you know like the old german ones, which allowed Uwe Boll to do so many movies? Then again... maybe we've got someone who thinks SC will be the next Minecraft.

dsmart

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Re: Star Citizen - Breaking News
« Reply #519 on: December 21, 2018, 09:26:43 AM »
In today's UK filing, we find out that back in Nov, they changed the name of the parent company from Cloud Imperium Games, to Cloud Imperium. They're only just now filing that too.

https://beta.companieshouse.gov.uk/company/08815227/filing-history
Star Citizen isn't a game. It's a TV show about a bunch of characters making a game. It's basically "This is Spinal Tap" - except people think the band is real.

StanTheMan

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Re: Star Citizen - Breaking News
« Reply #520 on: December 21, 2018, 01:26:08 PM »
In today's UK filing, we find out that back in Nov, they changed the name of the parent company from Cloud Imperium Games, to Cloud Imperium. They're only just now filing that too.

https://beta.companieshouse.gov.uk/company/08815227/filing-history

Because they want to be able to diversify ?

Greggy_D

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Re: Star Citizen - Breaking News
« Reply #521 on: December 21, 2018, 02:08:33 PM »
Cloud Imperium Films

dsmart

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Re: Star Citizen - Breaking News
« Reply #522 on: December 24, 2018, 11:51:11 AM »
Apparently SQ42 on consoles is a thing again

https://twitter.com/dsmart/status/1077272581974175744
Star Citizen isn't a game. It's a TV show about a bunch of characters making a game. It's basically "This is Spinal Tap" - except people think the band is real.

jham

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Re: Star Citizen - Breaking News
« Reply #523 on: December 24, 2018, 01:34:14 PM »
I wonder if the new investors are demanding things like this.

N0mad

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Re: Star Citizen - Breaking News
« Reply #524 on: December 24, 2018, 02:52:57 PM »
I wonder if the new investors are demanding things like this.

Clearly there's a new push for SQ42. I wonder if the new investors are holding Chris's feet to the fire and making sure he gets things done as promised.

... I just read that last sentence again and laughed. I guess the bigger question is: what will the investors do when Chris fails to stick to the schedule?

 

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