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

[Staffan]

Bah, what would they know about it? They're probably still running a mono-black Shadow deck and wondering why everyone sideboards blue to make dupes.

(You're totally right, though.)

Nah, Finkel's both blue and black.

 

[The Glen]

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.

It was a 5-minute clip with that mad money guy explaining the different scenarios of what could happen. It might be on YouTube I saw it on television

 

[Jer]

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.

When investor complaints about mismanagement line up with employee complaints about mismanagement I listen. The employees are usually more concerned about the long term health of a publicly traded company than any other stakeholders, including usually upper management. And definitely more than folks whose major interest in the company is how much they're going to be able to sell the stock for in the next few quarters - or even days. (Private companies are a bit different in that respect - there's usually a legacy that the folks at the top are concerned about).

But when investors are complaining that a company is "mismanaged" because they could make more money thought stock manipulating shennanigans and the management won't do it, they need to be roundly ignored. Not just ignored - actively shouted down. That's how companies get destroyed. Because folks like that are not motivated to thnk about the long term health of the company - they're motivated to think about how to maximize their earnings. And if destroying the company would make them wealthy beyond the dreams of King Midas, well, they're going to do that.

Wizards right now is a company that basically produces two products - Magic the Gathering and Dungeons and Dragons - along with being the major cog in Hasbro's long-term electronic gaming strategy. They are very profitable licenses to own right now, but being part of a larger company can help to shield them when times eventually again dip for those two major products. Because they will - the entertainment industry is not an ever increasing line of popularity, it's full of ups and downs.

 

[Mannahnin]

But when investors are complaining that a company is "mismanaged" because they could make more money thought stock manipulating shennanigans and the management won't do it, they need to be roundly ignored. Not just ignored - actively shouted down. That's how companies get destroyed. Because folks like that are not motivated to thnk about the long term health of the company - they're motivated to think about how to maximize their earnings. And if destroying the company would make them wealthy beyond the dreams of King Midas, well, they're going to do that.

Do you think that Finkel's involvement and their arguments about supporting Magic (already a major cash cow, but undersupported in some ways I can see as a mostly casual but longtime player) better are purely smokescreen?

 

[GreyLord]

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.

I'm one of those "investors" as one would put it. I'm not the expert, just trying to actually have money for my retirement to keep flowing to me...plus...I like the company (currently).

I feel it boils down to several things, one is where Alta doesn't like my board picks (not just mine, others too).

Currently it is boardroom politics, and they are playing nasty.

MY FEELINGS (which are just feelings and could be wrong) is that they are taking the Mitt Romney type of approach to money and earnings, whilst my current feel is to do more of an Amazon type approach (investing in the company for better futures later).

That means that money may come from another section and be invested to prop up another and grow the company while Alta sees this as money which they could be receiving annually being used trivially. They also disagree on where that money is being spent or how it is going and whether it will actually be a fruitful investment later.

Just some feelings on the matter from me.

It may be that they also feel that reinvestment into WotC itself would be more useful than that money being invested into alternate properties in Hasbro.

I personally don't like their approach thus far as I think it will actually be harmful to "investors" like me and put my money more at risk. I'm obviously NOT the only opinion in the matter though, and there are tons of other "investors" in the picture (some of who are probably also on these boards as well).

 

[Jer]

Do you think that Finkel's involvement and their arguments about supporting Magic (already a major cash cow, but undersupported in some ways I can see as a casual player) better are purely smokescreen?

Pure smokescreen? Probably not. It wouldn't be the first time some "activist investor" wargaming the companies moves out in his own head became convinced that he knows better than the folks managing the company.

But I suspect that the fact that "weaponized nerdom" has become a thing in the last few years online is the reason that they're pushing that narrative. Trying to get a mob of fans onto your side to push to get your way online works, so folks are going to keep using it as long as it keeps working.

 

[AbdulAlhazred]

When investor complaints about mismanagement line up with employee complaints about mismanagement I listen. The employees are usually more concerned about the long term health of a publicly traded company than any other stakeholders, including usually upper management. And definitely more than folks whose major interest in the company is how much they're going to be able to sell the stock for in the next few quarters - or even days. (Private companies are a bit different in that respect - there's usually a legacy that the folks at the top are concerned about).

But when investors are complaining that a company is "mismanaged" because they could make more money thought stock manipulating shennanigans and the management won't do it, they need to be roundly ignored. Not just ignored - actively shouted down. That's how companies get destroyed. Because folks like that are not motivated to thnk about the long term health of the company - they're motivated to think about how to maximize their earnings. And if destroying the company would make them wealthy beyond the dreams of King Midas, well, they're going to do that.

Wizards right now is a company that basically produces two products - Magic the Gathering and Dungeons and Dragons - along with being the major cog in Hasbro's long-term electronic gaming strategy. They are very profitable licenses to own right now, but being part of a larger company can help to shield them when times eventually again dip for those two major products. Because they will - the entertainment industry is not an ever increasing line of popularity, it's full of ups and downs.

All totally good points. I was wondering when someone would point out that WotC being on its own is, at best, a two-edged sword. Yes, they might, currently be getting slowed down in some way because they may be subsidizing some other product lines, but EVENTUALLY D&D will be in a doldrum again, and then it will be REALLY NICE that G.I. Joe or whatever is kicking out the cash that year.

IMHO these investors are just following the time honored tradition of splitting up a company. Any time you have a single business which owns several different product lines that are only loosely related it is VERY likely that selling each one off piecemeal will net you a profit in the short term. There's no reason to believe this is good overall for the whole business in the long run. In fact these same 'raiders' may well think they can snap up the choicest parts too. The big smell will come when someone starts saying the words 'private equity'. Then you know there's really good money to be made, but the public isn't invited to the party.

 

[Stormonu]

All I know is Hasbro needs to get its act together and fix GI Joe.

 

[Henadic Theologian]

All I know is Hasbro needs to get its act together and fix GI Joe.

Suggestions on how they do so?

 

[Parmandur]

Do you think that Finkel's involvement and their arguments about supporting Magic (already a major cash cow, but undersupported in some ways I can see as a casual player) better are purely smokescreen?

Nothing in life is pure, but pretty much yup, totsl smokescreen.