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

[Henadic Theologian]

Filing: Wizards of the Coast makes up roughly 70% of Hasbro's value - Magic Untapped

Hasbro's Wizards of the Coast division makes up roughly 70% of the company's value, according to a filing by asset management firm Alta Fox.

magicuntapped.com

Alta Fox isn't giving up without fight, they know Hasbro is an anchor around WotC's neck. If WotC's grow continues like it is, both D&D, MtG and future TV & movie projects tied to this, in a few years that 70% could turn into 90%, even 95% of the value.

 

[Fifth Element]

The corporatespeak in that documents drives me around the bend.

 

[DeviousQuail]

70% seems crazy high. Maybe I'm misunderstanding what that means but doesn't Hasbro own a ton of stuff. Like 100s of different toys and games as well as some entertainment things outside of WotC?

 

[Irlo]

Hasbro is not an anchor around WotC's neck. Hasbro might be an anchor around the neck of those investors, keeping them from extracting as much unearned wealth as they can from WotC, but it'ss not an anchor around WotC's neck.

 

[Henadic Theologian]

70% seems crazy high. Maybe I'm misunderstanding what that means but doesn't Hasbro own a ton of stuff. Like 100s of different toys and games as well as some entertainment things outside of WotC?

Hasbro does own a ton of stuff, most of which aren't doing well, and many products have been shelved. Most of Hasbros value is generated by WotC. Some stuff like Nerf is still does well.

 

[Henadic Theologian]

Hasbro is not an anchor around WotC's neck. Hasbro might be an anchor around the neck of those investors, keeping them from extracting as much unearned wealth as they can from WotC, but it'ss not an anchor around WotC's neck.

Actually it's the board of Hasbro that's extracting unearned wealth from WotC, not Alta Fox. They are draining value from WotC to fund other stuff in Hasbro that doesn't do well and not properly reinvesting WotC.

 

[Cadence]

Actually it's the board of Hasbro that's extracting unearned wealth from WotC, not Alta Fox. They are draining value from WotC to fund other stuff in Hasbro that doesn't do well and not properly reinvesting WotC.

Is the other part profitable? If yes, then it isn't an anchor unless WotC would give a higher return.

And, for the WotC part, it isn't like MtG and D&D are machines that can take unlimited investment and generate the same return. An MtG set a month or 15 D&D books a year could very well kill the golden goose.

 

[darjr]

well

 

[Parmandur]

70% seems crazy high. Maybe I'm misunderstanding what that means but doesn't Hasbro own a ton of stuff. Like 100s of different toys and games as well as some entertainment things outside of WotC?

Profit, as I understand it.

Magic: The Gathering is bigger than ever tight now, particularly with Arena, and the D&D dside gig is profitable. Both have low overhead.

 

[Henadic Theologian]

Is the other part profitable? If yes, then it isn't an anchor unless WotC would give a higher return.

And, for the WotC part, it isn't like MtG and D&D are machines that can take unlimited investment and generate the same return. An MtG set a month or 15 D&D books a year could very well kill the golden goose.

That entirely the point, WotC would be even more profitable without Hasbro drawing away its resources to invest them in bad choices.

 

[Parmandur]

That entirely the point, WotC would be even more profitable without Hasbro drawing away its resources to invest them in bad choices.

You seem awfully invested in this sideshow?

 

[Cadence]

That entirely the point, WotC would be even more profitable without Hasbro drawing away its resources to invest them in bad choices.

Does the other Hasbro stuff need investment, or is it profitable on its own (just not as profitable as WotC).

Does a profitable side branch give some help in case of a down year for MtG or DnD?

 

[Parmandur]

Does the other Hasbro stuff need investment, or is it profitable on its own (just not as profitable as WotC).

Does a profitable side branch give some help in case of a down year for MtG or DnD?

It just not as profitable...right now.

Their global brand strategy is in the early stages: once they get that machine moving full steam, Hasbro will be in a good place.

 

[Jer]

It just not as profitable...right now.

Their global brand strategy is in the early stages: once they get that machine moving full steam, Hasbro will be in a good place.

Investors like Alta Fox think "long term" means next quarter. The worst kind of bloodsucking leeches are the short term profits Uber alles folks.

 

[TerraDave]

Right now Hasbro has an almost 12 billion USD market cap.

So, if this is right (and it might be wrong) WotC is worth over 8 billion. Thats with a "b".

Is D&D worth 1 billion? Its a funny thought, but it could be.

 

[Parmandur]

Investors like Alta Fox think "long term" means next quarter. The worst kind of bloodsucking leeches are the short term profits Uber alles folks.

Thinking like this killed Toys R Us. It can kill again.

 

[Parmandur]

Right now Hasbro has an almost 12 billion USD market cap.

So, if this is right (and it might be wrong) WotC is worth over 8 billion. Thats with a "b".

Is D&D worth 1 billion? Its a funny thought, but it could be.

Well...thisnis about the profits, not that.

D&D is doing OK, but Magic is printing money at an increasingly accelerating rate. Turns out it wasn't a fad?

 

[Cadence]

D&D is doing OK, but Magic is printing money at an increasingly accelerating rate. Turns out it wasn't a fad?

A non-fad that has had one or two significant downward blips over the decades. And is in many senses a single product with all the dangers that come with that.

 

[Parmandur]

A non-fad that has had one or two significant downward blips over the decades. And is in many senses a single product with all the dangers that come with that.

True that. I've only dabbled in Magic, and recently, but I'm old enough to remember it being dismissed as the flavor of the month.

 

[Cadence]

True that. I've only dabbled in Magic, and recently, but I'm old enough to remember it being dismissed as the flavor of the month.

If only we hadn't sold out of our valuable cards sometime in the 00s when it was looking weak, instead of after it took off again...

And thank goodness for Commander.