remember_spinal
Banned
It’s not just for who’s signed on now its for who they hire between now and by the time the acquisition is finished, this number is part of thte recruitment process
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Sony is offering Bungie employees a $1.2 billion incentive program in an effort to keep them at the company following the buyout.
- Thread starter remember_spinal
- Start date
- News Sales-Age
It’s not just for who’s signed on now its for who they hire between now and by the time the acquisition is finished, this number is part of thte recruitment process
BadBurger
Is 'That Pure Potato'
Both my current and previous employer were involved with buyouts that focused largely on acquiring expertise and knowledge, and they offered them pretty sweet deals similar to this one (just on a smaller scale). It's pretty common in the tech industry when things like IP or built-in customer bases aren't the primary factors driving an acquisition.
That said, $1.2bn for a company of only about a thousand employees is very, very gracious.
Yoboman
Member
Which goes to show the organisation is more important than the individuals in it
Bungie have great systems and infrastructure to make great products. The movement of a few individuals doesn't change that. But a mass exodus could
Thats why these sorts of deals are put in place
They could deal with hundreds of people turning over if its over a ten year period. But if it all happens quickly then its a major problem
Bo_Hazem
Banned
This reminds me of Resetera buyout and all the drama for not spreading the money with the mods/members. Imagine if they got paid?
Fuz
Banned
Except there is no talent in activision.
Tiago Rodrigues
Member
Fake
Member
Maybe they want to remain free from big companies.
Maybe they think will take their liberty to make games.
There are reasons to be afraid of big acquisitions. Happens all the time.
ZehDon
Gold Member
It saddens me to no end that Americans need multi-billion dollar acquisitions to trigger generous corporate pay-outs to both pay for an education and have a chance at owning a home. What a world...
Swift_Star
Banned
Sony has credit, just like Netflix has credit. This “no money” BS has to stop.
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Bernkastel
Ask me about my fanboy energy!
Swift_Star
Banned
it’s hilarious when you put it that way. People in forums are clueless about how business works. Sony bought the people, destiny just happened to come along and having a retention plan is normal, or else everyone would leave.
MasterCornholio
Member
Ironic isn’t it?
Can’t say you didn’t have plenty of chances. The mods have been more than fair with you IMO. Just learn from this and don’t get permed.
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oldergamer
Member
This seems really strange to me, but if it means extra cash for the employees. That is really cool.
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ethomaz
Banned
No.
"Sony will pay the remainder $2.4 billion for a direct buyout of Bungie's private shares."
They paid ~$2.4b to buy Bungie's shares.
They plan to give more ~$1.2m in incentives for employees... seems like $700-800m in the first 2 years.
The $3.6b already accounts the expensives for the incentive to be paid in long term.
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Max Payne’s Baretta
Banned
So in SUM 3.6b will have been spent…..
ethomaz
Banned
You know Sony pay incentives to Sony's employees too.
That is a normal thing in companies and it is separated in the financials to the money used to buy out.
They paid $2.4b for the shares... that is what they are paying for the company.
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rickybooby87
Member
A lot of people seem to forget this one little thing, sometimes when you don't have enough cash, you can go to these really big houses, located in every town, sometimes, there are tons of them in a single town, sometimes it's a really large building! and they will literally spot you some walking around cash for a small fee. It's wild.
Max Payne’s Baretta
Banned
The deal is worth 3.6. The line item breakdown doesn’t matter.
ethomaz
Banned
Outside the credit option Sony posted last quarter they have around $20b in cash to make acquisitions.
If we discount Bungie $2.4b they still have a good amount of money to use.
Daymos
Member
I dunno why people think buying IPs and milking them is the way to go, you've got thq Nordic for that.
It's the knowledge that the studio has that matters, like look at Xenoblade on Wii, freaking amazing tech that was way beyond Nintendo first party(skyward sword), buying monolithsoft is how Nintendo made Zelda botw.
It's the knowledge that the studio has that matters, like look at Xenoblade on Wii, freaking amazing tech that was way beyond Nintendo first party(skyward sword), buying monolithsoft is how Nintendo made Zelda botw.
ethomaz
Banned
So why they did breakdown? lol
I can't even.... that is not how it works.
Max Payne’s Baretta
Banned
I’m not even sure you know what you’re arguing at this point.
ethomaz
Banned
I'm arguing about facts.
$2.4b will be paid for Bungie shares... that is the value of the acquisitions.
Max Payne’s Baretta
Banned
That’s for the entire company. They have also been purchasing music rights.
Sony is already in deep debt and can’t play with the big boys in this spending race.
The point is just that the company itself actually costed 2.4 billions cash.
The rest is in deferred bonuses which will be paid if employees meet the requested conditions.
Companies pay bonuses all the time based on KPI (key performance indicators).
An other point is that these acquisition deals can be done in many ways. Paying everthing in cash in a single solution is not the only way.
Max Payne’s Baretta
Banned
Sure but companies with tons of cash don’t have to prioritize this lol.
Swift_Star
Banned
Source? I mean, it’s clear this bungie acquisition left a lot of people shook because now the same people that praised the A/B acquisition are now cowering in fear. I wonder… why is that?
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Max Payne’s Baretta
Banned
Source for what ? That they can’t spend as much money as tech giants ? That’s self evident.
The same was stated just a week ago. They won't spend more than 1b in acquisitions, they can only buy small studios and pursue organic growth and so on.
They had record profits again this year.
Sony won't stop, the message from Jim Ryan was clear.
Surely they won't make a 50-70 billion acquisition, that I can pretty much agree on.
But everything up to 10 billion is a target.
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JCK75
Member
Smart move, I feel like Microsoft got shafted when they bought Rare, seems like none of the actual talent was still around.
Max Payne’s Baretta
Banned
Sure but they want pubs what pubs of consequence can they snag for sub 10Bs?
Everyone but EA and Take Two.
Swift_Star
Banned
Source about the deep debt? And, yes, they can, apart from the 17b+ they have in cash, they can borrow money, you know, credit is a thing, banks exist. So you can stop this BS. We all know you’re just telling this to yourself hoping Sony won’t snatch your favorite publisher alway from your favorite platform. But I must tell you: posting on a forum won’t change what they’re doing.
Max Payne’s Baretta
Banned
So no one ok
Ahah ok you're delusional if you think that Capcom, Square, Sega, Ubisoft are no one.
Max Payne’s Baretta
Banned
My guy idk what reality you’re living in but Microsoft and Sony are not comparable when it comes to spending potential.
They just committed to dropping 68bs and made 22bs profit in the same Quarter of the announcement.
These orgs play on different scales. Doesn’t seem like you’ve made peace with that reality yet.
Sony will never be able to compete with Multi Trillion dollar companies in spending.
Max Payne’s Baretta
Banned
Capcom isn’t selling lol , Square is inconsequential.
You removed the two biggest and most consequential Pubs from the running. You literally proved me right.
Sony can’t afford this battle lol.
Ubisoft .. really lol
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Tiago Rodrigues
Member
Capcom and Square-Enix?
Look at their IP list.
How is that "no one"? The disrespect, holy shit...
Yeah yeah, keep your delusion until the next Bungie acquisition is announced this year.
Capcom is not selling, surely you had a meeting with their executives and they told you as much.
Max Payne’s Baretta
Banned
Capcom isn’t even in consideration they aren’t selling.
Square is legit inconsequential
Tiago Rodrigues
Member
Numbers from their gaming divisions.
Sony is shaking right now.
How will they ever survive
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Max Payne’s Baretta
Banned
Capcom themselves literally stated how they were doing better than ever.
Also they are on record stating that PC will be their primary platform moving forward. For as much intensity as you’re bringing to this convo your knowledge seems tepid at best.
Max Payne’s Baretta
Banned
Lol post Microsoft’s (not just Xbox )profits and revenue vs Sonys
mansoor1980
Gold Member
some godfather drama going on at sony
DForce
NaughtyDog Defense Force
You literally don't know what's going to happen a year from now. Don't know why Xbox fans always do stuff like this.
Tiago Rodrigues
Member
That's both revenue numbers from their gaming divisions alone for both companies.
MS is the one that doesn't even share their operating income for Xbox...wonder why
ethomaz
Banned
What that even has to do with what we are discussing lol
You are really salty.
Why are you on NeoGAF discussing games?
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