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[StreetsofBeige]

Years back I went over to their New York office to do some work for a week. Come Friday evening I needed to go to the airport to go back home. My manager told me to call “Tammy in corporate” and she’ll book a car for me. Hour later Tammy calls and tells me the car is outside. So I grab my suitcase and go down. Expectation, a yellow cab, reality a stretched limo. Fucking. Sweet. I was just a low level manager.

Shit like that times infinity is how they lose that much money.

Thats tech companies for ya.

I've had a job interview in the US where they flew me down (from Canada). They paid for transportation too which makes sense since the office is a good 45 min away. It was normal taxi to the office and then back to the airport.

Thick or thin it always seems every tech company has unlimited money..... (at least on the surface they try to make it look that way)

 

[Felessan]

I’m not an accountant but I’ve never understood why acquired companies show up as intangible assets based on acquisition price

Why aren’t they just valued based on their book?

Because otherwise they had to show a huge loss instantly. All IPs value, expertise, future prospects, overperformance etc - it's all goodwill/intangible assets.
For example CoD had zero value on ATVI BS and obviously CoD has a lot of value in itself. This is why market valuated ATVI 3 times higher than it's book value.

 

[Felessan]

Thats tech companies for ya.

I've had a job interview in the US where they flew me down (from Canada). They paid for transportation too which makes sense since the office is a good 45 min away. It was normal taxi to the office and then back to the airport.

Thick or thin it always seems every tech company has unlimited money..... (at least on the surface they try to make it look that way)

It's pennies in grand scheme of things. R* would be still in red even if they cut G&A to zero (which is impossible, you had to manage workplaces at least).

 

[farmerboy]

Hookers and blow. For GTA research, of course.

 

[Negotiator101]

Looks like it. T2 acquires Zynga for $12 billion. And see how Goodwill/Intang jumps up $12B. Zynga is a software company so they arent going to have a lot of tangible assets to begin with. They announced writing down $2B of it already.

https://finance.yahoo.com/quote/TTWO/balance-sheet

That makes sense, thanks.

 

[Radical_3d]

Thats tech companies for ya.

I've had a job interview in the US where they flew me down (from Canada). They paid for transportation too which makes sense since the office is a good 45 min away. It was normal taxi to the office and then back to the airport.

Thick or thin it always seems every tech company has unlimited money..... (at least on the surface they try to make it look that way)

What’s wrong with a Teams call?

 

[Spyxos]

That's what they get for not making a next gen version of RDR2.

That's what they get for not supporting red dead online.

 

[efyu_lemonardo]

They don't have any choice but to evaluate goodwill every year. If they can't prove that goodwill has maintained its value they have to recognize the loss of value via impairment.

Thank you for this. It's what I didn't understand in previous explanations, and is necessary to keep the bookkeeping honest.

 

[Klosshufvud]

Wonderful! Take Two takes the money earned from the highest selling game of all times, "invests" them in a highly volatile market and are now losing billions, pretty much rendering the entire GTAV success as void. The only only ones benefitting are the lucky bastards at Zynga who could afford entire nations from the acquisition. And then the Take Two CEO has the absolute audacity to say that games at $70 are underpriced. Imagine if they put those money investing in more games. Then we'd have more than one Rockstar game per gen perhaps. But no, let us keep fund their mad pursuit of early retirement in some tax dodging paradise.

 

[nush]

Thats tech companies for ya.

Take 2 used to have an office In Hong Kong. My boss would go there often and at the weekends the manager of that office would take him over to Macau. One time by boss didn't want to go Macau and wanted to stay in HK. He hated the jet boat they took to get there, it was noisy, smelly and took over an hour. So rather than offend the HK manager he said no without saying no "I'll only go if we can take a helicopter". One hour later he gets a call, "I've got us the helicopter to Macau!"

 

[Silver Wattle]

Some obvious hollywood-style book cooking happening here, but it's apparent that there is a lot of fat that needs to be trimmed within this company.

 

[Spyxos]

Take 2 used to have an office In Hong Kong. My boss would go there often and at the weekends the manager of that office would take him over to Macau. One time by boss didn't want to go Macau and wanted to stay in HK. He hated the jet boat they took to get there, it was noisy, smelly and took over an hour. So rather than offend the HK manager he said no without saying no "I'll only go if we can take a helicopter". One hour later he gets a call, "I've got us the helicopter to Macau!"

Weren't there very similar stories from Thq?

 

[TheGodfather07]

Clearly red dead redemption 2 is still selling very well, yet no current gen patch. Why?

 

[nush]

Weren't there very similar stories from Thq?

Probably, if you get to a certain level anything can be signed off.

 

[NickFire]

Clearly red dead redemption 2 is still selling very well, yet no current gen patch. Why?

Greediest company in gaming history is my guess.

 

[ReBurn]

Thank you for this. It's what I didn't understand in previous explanations, and is necessary to keep the bookkeeping honest.

Certainly. It shows that if T2 were to try to sell the assets they list under goodwill, this is how much less they believe that they would be able to reasonably expect to get from the sale compared to what they paid. More simply, the fair market value of their intangible assets has dropped that much.

Impairment expenses like this don't necessarily mean that there has been a reduction in how much money the company has or that there are issues with cash flow, but it certainly is a very public indication of the job management is doing making investment decisions. This says "oops, we probably overpaid for what we bought when we bought it and now we have to let everyone know."

 

[Del_X]

What the fuck lol

They're burning cash worse than Rivian

 

[Mr.Phoenix]

The industry is fucked.

The have insane sales for their franchise, yet they made that huge loss.

Now we see why they want live service games.

Absolutely insane numbers.

3.7 billion dollar loss, what the actual fuck.

Its weird they have that listed as a loss. But that's not really a loss.