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.