WotC Hasbro slapped by bank of america for destroying customer goodwill

[Henadic Theologian]

Hasbro Slapped by Bank of America For 'Destroying Customer Goodwill'

Bank of America has once again stated that Hasbro continues to "underperform" while destroying customer goodwill.

www.belloflostsouls.net

I heard the Bank of America cut their estimate of Hasbro's value by 29%.

 

[Retreater]

Wait ... again?

 

[Scribe]

Wait ... again?

Bank of America has once again stated that Hasbro continues to “underperform” while destroying customer goodwill.

Hasbro has come under fire recently, leading Bank of America to once again reiterate the “Underperform” rating for the toy giant. In a report by Business Insider, Bank of America called out Wizards of the Coast’s recent troubles as destroying customer goodwill, stating that the company might face a steep decline if that trend continued.

This of course, follows in the wake of the recent OGL leaks and backpedaling, resulting in the SRD 5.1 being released into Creative Commons.

Big, oof.

EDIT: lol

According to BofA, Hasbro’s single biggest problem is trying to over-monetize the brands at WotC. This directly contradicts a fireside chat by WotC CEO Cynthia Williams, who claimed that Dungeons & Dragons was under-monetized. BofA maintains that this drive to increase monetization is one of the leading factors in its declining price:

“Within its Wizards segment, Hasbro continues to destroy customer goodwill by trying to over-monetize its brands.”

This sentiment echoes BofA’s earlier rebuke, which led to a downgrade of Hasbro’s stock rating in November 2022. BofA warned that Hasbro was “killing its golden goose” by over-saturating and over-monetizing Magic: the Gathering.

 

[Scribe]

Hasbro 'continues to destroy customer goodwill' and the stock could crash 29% as it dilutes the value of Magic: The Gathering, Bank of America says

The oversupply means "card prices are falling, game stores are losing money, collectors are liquidating, and large retailers are cutting orders," BofA said.

markets.businessinsider.com

 

[Jer]

Wait ... again?

BofA is just reiterating what they've previously said in a report to a different audience. So it's not a further downgrade just a reiteration of their previous one with some new data added. Like this little quote:

"We remain especially cautious on Hasbro's Wizards segment given its over-monetization of Magic. Wizards recently tried a similar tactic with D&D-proposing changes to its licensing agreement which led to substantial pushback from the community including calls to boycott the D&D movie," BofA explained.

I think this is actually a shot at Hasbro investors and their board. A "Hey dummies - this company isn't worth what you all think it is. Stop trying to make fetch happen" sort of thing. Their irrational belief that Hasbro stock should be worth triple digits is fueling these dumb moves and BofA is warning them that in their opinion it's stupid. But I may be reading it with my own biases on

 

[Vaalingrade]

Hannibal Lector slams Jeffery Dahmer over meal prep.

 

[Scribe]

 

[Jer]

View attachment 275100

Still about double what anyone should actually be paying for it IMO.

 

[Haplo781]

I'm selling "Alta Fox Was Right" t-shirts if anyone is interested.

 

[Paul Farquhar]

I'm selling "Alta Fox Was Right" t-shirts if anyone is interested.

Alta Fox was planning on doing exactly what Hasbro tried to do. Monetarise 3PP.