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<blockquote data-quote="innerdude" data-source="post: 9325073" data-attributes="member: 85870">The strategy seems pretty obvious from the outside.The companies grouped with Asmodee are generally past their &quot;prime earning&quot; product years. You're going to see slow, stable revenue from them but very little innovation, very little &quot;big bang&quot; new product revenue (that's all going to come from the interactive side of the fence).You're basically hedging the bet that Asmodee group can just sort of grind it out to net-positive profit or something close to it, hopefully reaching a revenue target to pay down debt structure, until the loan either gets called and you liquidate, or you restructure the loan against another short term horizon for payoff (18 or 24 months) where you just continue to grind away at it.Saddling the debt to the slower, less innovative entity frees project capital for the interactive side rather than having to push money that could be put toward &quot;home run&quot; product releases against the debt.I would be shocked if anything shuffled into the Asmodee group exists 5 years from now.*Edit: To clarify, the product IPs will remain on the market. Catan isn't going anywhere. Ticket to Ride isn't going anywhere. Days of Wonder has multiple Board Game Geek Top 100 games that aren't going anywhere. But if the loan call horizon hits in 2025 and there's no foreseeable way to pay down the debt directly from the Asmodee group, it will definitely be vultures circling looking to pick off the most valuable properties one by one. But it's interesting for sure. I imagine the Catan intellectual property alone is probably worth several hundred million.</blockquote>

[QUOTE="innerdude, post: 9325073, member: 85870"] The strategy seems pretty obvious from the outside. The companies grouped with Asmodee are generally past their "prime earning" product years. You're going to see slow, stable revenue from them but very little innovation, very little "big bang" new product revenue (that's all going to come from the interactive side of the fence). You're basically hedging the bet that Asmodee group can just sort of grind it out to net-positive profit or something close to it, hopefully reaching a revenue target to pay down debt structure, until the loan either gets called and you liquidate, or you restructure the loan against another short term horizon for payoff (18 or 24 months) where you just continue to grind away at it. Saddling the debt to the slower, less innovative entity frees project capital for the interactive side rather than having to push money that could be put toward "home run" product releases against the debt. I would be shocked if anything shuffled into the Asmodee group exists 5 years from now. *Edit: To clarify, the product IPs will remain on the market. Catan isn't going anywhere. Ticket to Ride isn't going anywhere. Days of Wonder has multiple Board Game Geek Top 100 games that aren't going anywhere. But if the loan call horizon hits in 2025 and there's no foreseeable way to pay down the debt directly from the Asmodee group, it will definitely be vultures circling looking to pick off the most valuable properties one by one. But it's interesting for sure. I imagine the Catan intellectual property alone is probably worth several hundred million. [/QUOTE]

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