WotC Filing: Wizards of the Coast makes up roughly 70% of Hasbro's value

[Mecheon]

Also let's also not forget they're comparing stocks today to stocks in 2015. HRM. I WONDER WHAT WORLDWIDE EVENTS HAVE HAPPENED SINCE THEN THAT MAY IMPACT OTHER THINGS HASBRO OWNS, PARTICULARLY ANYTHING TIED TO CUSTOMER'S SPENDING POWER OR TO THE PRODUCTION OF MOVIES OR RELYING ON GLOBAL SHIPPING. HRM...

They are investors expecting money to always go up and trying any scheme they can to get more cash in their pockets. I think this post on Reddit encapsulates it fully:
"Yep - Alta Fox is using their own tactics to do exactly what they're doing - rally a vocal minority of self-appointed astroturfed critics who exploit the general lack of education on the issue/topic to rally additional people to the cause who also have no idea what they're talking about."

 

[Maxperson]

Not quite the same thing. WotC earns what it earns. It's what happens to those earnings that's in question here. If the earnings get siphoned off into Alta Fox's coffers or get siphoned off into Hasbro properties, it doesn't mean that WotC is earning less. Hasbro is not keeping WotC from earning as much as it can. They're making decisions about what to do with those earnings.

The investors get money that goes to Hasbro, because they get money dependent on the value of Hasbro stocks. If that money was the same as it would be if WotC was independent, then they would not be complaining. They want them separated so that the stock value goes up, because Hasbro stops being a weight around WotC.

 

[Maxperson]

Yeah, no, I don't trust these guys analysis.

That's fine, but that's the argument being put forth.

 

[Cadence]

The investors get money that goes to Hasbro, because they get money dependent on the value of Hasbro stocks. If that money was the same as it would be if WotC was independent, then they would not be complaining. They want them separated so that the stock value goes up, because Hasbro stops being a weight around WotC.

Would the folks who buy the stocks (mutual funds, etc ...) look on WotC as a better investment with its two narrow but very profitable product lines than they would the combined Hasbro with a lot more IP and product lines, many of which are currently down?

 

[Maxperson]

Would the folks who buy the stocks (mutual funds, etc ...) look on WotC as a better investment with its two narrow but very profitable product lines than they would the combined Hasbro with a lot more IP and product lines, many of which are currently down?

That's the idea. I don't know if it's accurate or not, but that's the argument.

 

[Parmandur]

Also let's also not forget they're comparing stocks today to stocks in 2015. HRM. I WONDER WHAT WORLDWIDE EVENTS HAVE HAPPENED SINCE THEN THAT MAY IMPACT OTHER THINGS HASBRO OWNS, PARTICULARLY ANYTHING TIED TO CUSTOMER'S SPENDING POWER OR TO THE PRODUCTION OF MOVIES OR RELYING ON GLOBAL SHIPPING. HRM...

They are investors expecting money to always go up and trying any scheme they can to get more cash in their pockets. I think this post on Reddit encapsulates it fully:
"Yep - Alta Fox is using their own tactics to do exactly what they're doing - rally a vocal minority of self-appointed astroturfed critics who exploit the general lack of education on the issue/topic to rally additional people to the cause who also have no idea what they're talking about."

Bingo.

 

[Parmandur]

That's fine, but that's the argument being put forth.

Sure, but it's not in good faith on their part. It's a scam.

 

[The Glen]

Would the folks who buy the stocks (mutual funds, etc ...) look on WotC as a better investment with its two narrow but very profitable product lines than they would the combined Hasbro with a lot more IP and product lines, many of which are currently down?

According to CNBC who actually discussed this when the news first hit WOTC would spike almost immediately, which can cause the people who wanted it to split to dump their shares at the peak. This can crash the company leaving it far worse than it was but the investors walk away with loads of cash.

That was listed as just a possibility, they gave some examples when it happened before but nothing I had heard off. German manufacturing and some tech companies were the examples.

 

[Irlo]

The investors get money that goes to Hasbro, because they get money dependent on the value of Hasbro stocks. If that money was the same as it would be if WotC was independent, then they would not be complaining. They want them separated so that the stock value goes up, because Hasbro stops being a weight around WotC.

Really, I do understand the argument and the investors' desire to make more money. I understand how stocks and investments work. I understand the point of the filing.

Here's the thing. I don't care about the investors' complaints. I don't care that they're not getting as much money as they might otherwise. Hasbro is not an anchor around WotC's neck. Hasbro's financial plans are an anchor around Alta Fox's neck.

 

[Maxperson]

Really, I do understand the argument and the investors' desire to make more money. I understand how stocks and investments work. I understand the point of the filing.

Here's the thing. I don't care about the investors' complaints. I don't care that they're not getting as much money as they might otherwise. Hasbro is not an anchor around WotC's neck. Hasbro's financial plans are an anchor around Alta Fox's neck.

Are you aware that corporations have a fiduciary duty to maximize the money the investors make? If they fail in that duty, they can be sued.