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


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Count_Zero

Adventurer
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.

Do you have a source for this - just so I can bring that up for other people who decide to get into the "WotC should get rid of Hasbro, just like these corporate raiders activist investors said they should!" nonsense.
 

You might not(and I personally don't), but the investors and corporations have to.
Welcome to why investors and corporations make ready-made villains in just about everything

If an investor could get an extra dollar out of killing everything associated with Dungeons and Dragons, salting the earth so there is no hope anything related to it would ever happen again, they'd mash that option fast enough to cause cavitation
 

TerraDave

5ever, or until 2024
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?
Actually its totally about that. At least according to these activist investors.

There are lots of indications that D&D is now a significant contributor. It has to be worth hundreds of millions, at least. I see two implications of this, one very trivial, one slightly less so:

1) So many here will never believe it. Denial of D&D's commercial success is just too deeply ingrained. Does not matter what is reported.
2) The stakes are high for the 2024 edition. A few hundred million more (or millions in earnings) if it goes well, a few hundred million less if it doesn't. No pressure Crawford.
 

Parmandur

Book-Friend
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.
So, the point being missed here is, the corporation is responsible to maximize value for investors...including people who buy the stock. A rash pump and dump scheme, like these guys want, is contrary to maximizing value for all investors.
 



Steampunkette

Rules Tinkerer and Freelance Writer
Supporter
So... "Value" is not "Revenue" or "Profits".

It's Valuation.

My house is worth $130,000. That doesn't mean I'm getting cash out of it. (Quite the opposite, really). It just means the VALUE is at $130,000.

They then go on to say how much WotC made for Hasbro in 2021 to try and convince you that it made 70% of the profits for that year... but that's not the case.

WotC made $1.29 billion in 2021. Hasbro, as a -whole-, made $5.47 billion. https://investor.hasbro.com/static-files/09f9b01d-1faf-4cb3-ab5d-634cbbefe000

The issue lies in -ownership-. Hasbro doesn't -own- most of the properties it makes toys of. Star Wars, Marvel, Sesame Street, Disney Princess Line, etc etc etc. All owned by Disney. So while they all combined to make another $4.18 billion for Hasbro in 2021, their value is significantly less because it's -just- the License, rather than outright owning the property.

Through WotC, Hasbro owns the IP of D&D and MtG.

The OP article is heavily massaged numbers structured to make you feel outraged by giving you an intentionally lesser picture of what's happening.
 

Steampunkette

Rules Tinkerer and Freelance Writer
Supporter
Also of note:

What has happened in the last five years that would lower the value of stocks past what it was five years ago?

5 years ago it was worth $95 a share. Today it's worth $85 a share. At it's peak between the two it hit $121 a share. And at it's lowest point it hit $46 a share.

It hit it's lowest point on March 20th, 2020.

It went from $104 on the 7th of January down to $46 on the 20th of March, 2020.

I'll give you a hint. It starts with C and ends with oronavirus.

Also, the 365 day low they're "Near"? Was $81 and about a week ago when they haven't released any new toy lines or games. Their high? $103. Coinciding with the release of new sets of MtG cards and D&D book releases.

Gosh. I wonder why.

It's almost like the company's value fluctuates based on release dates ranging from $120 down to $80 and they're trying to use that fluctuation based on release dates to trick you into thinking Hasbro is running the company into the ground.
 

Maxperson

Morkus from Orkus
Modern corporate law does not require for-profit corporations to pursue profit at the expense of everything else, and many do not.

So saith the U.S. Supreme Court (in those exact words, in 2014).
What was the vote on that? If it was close, there's a very good chance that this Supreme Court would say something different.
 


Irlo

Hero
What was the vote on that? If it was close, there's a very good chance that this Supreme Court would say something different.
In this case, the break on the voting doesn't matter, because the issue of corporate prioritization of profit was not the issue that the court was deciding. It was a supporting argument in the body of an opinion. There were dissenting opinions, but they weren't dissenting on that particular point.
 


Maxperson

Morkus from Orkus
In this case, the break on the voting doesn't matter, because the issue of corporate prioritization of profit was not the issue that the court was deciding. It was a supporting argument in the body of an opinion. There were dissenting opinions, but they weren't dissenting on that particular point.
If it wasn't at issue, then this decision didn't decide it, correct? That means that the last time it came up, probably pre-modern corporate law, is what currently prevails. And the current court make-up seems unlikely to change that.
 

billd91

Not your screen monkey (he/him)
If it wasn't at issue, then this decision didn't decide it, correct? That means that the last time it came up, probably pre-modern corporate law, is what currently prevails. And the current court make-up seems unlikely to change that.
It wasn't directly at issue, but with it being in a SCOTUS decision, it can certainly be used in subsequent court cases. If this is the case I think it is, Burwell v Hobby Lobby, the conservatives aren't likely to change it. The decision was written by Alito and joined by all of the conservative justices at the time.
 

Leatherhead

Possibly a Idiot.
They are just trying to cut WotC out from under Hasbro so they can go full-on industrial whaling with the MTG Arena customers.

It would be horrible for anyone not forking over huge wads of cash to play the game, and I hate to see what would happen with D&D once they try to do the same thing with it.
 

A company is not only products and services, but the prestige of the brand, and the contacts for deals with others.

My suggestion is Hasbro to buy capital stock of Epic Games to make money with the licenced collaborations in Fortnite. Why not haven't we seen more skins of G.I.Joe after Snake Eyes?

Figura-accion-Snake-Eyes-Fortnite.jpg



Now Hasbro is more interested into the digital market, and not only videogames, but also to become a kid-friendly media empire as "Walt Disney". You may know I love theories and speculations about mergers and acquisitions, but it is not too fool to say we could see any new linked with Hasbro in the future. If there is certain radical changes in the entertaiment industry and some big fishes fall this or the next year, maybe Hasbro wanted their IPs.

If I was a Hasbro CEO I would lose sight of the current paht by Ony Paths and its franchises, not only World of Darkness and Chronicles of Darkness. How is Paradox Interactive compared with Hasbro?

Other theory is Gamma World will be a videogame and working as a playtesting of a future d20 Modern 2.0.
 

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