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Archive for the ‘Entrepreneurship & Management’ Category

Are social games going to die?

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Alex St. John, President and CTO of hi5, has written a very interesting article about the state of the social gaming market which was published on techcrunch.com. My interpretation of his article is: many social game companies will die and the few that survive will do what other online game companies (e.g. Bigpoint, gameforge, worldwidegames) have always been doing: build a platform-independent user base and create games that are playable across platforms without dependence on a single social network. Read the rest of this entry »

Written by Malte

September 18th, 2010 at 6:34 pm

Gameforge increases price for Frogster by 10% after unsuccessful takeover offer

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On 16 August 2010, Gameforge made a public takeover offer for the outstanding Frogster AG shares at a price of €25 per share. In a previous post to this topic I did a detailed financial analysis of the deal and came up with the idea that Gameforge could use Frogster AG to get a public listing of the Gameforge group via a reverse merger. Since then, Forgster management opposed this deal making it a hostile takeover offer and equity analysts (all three of them) saw the fair Forgster share price 50%(!) above the offer. One month later, 13 September 2010, only 1,326 shares of Frogster (that is only 0.05% of the company) could be acquired over the course of the offer. In case Gameforge really aimed at taking over Frogster in full, this takeover offer can really be deemed unsuccessful. Read the rest of this entry »

Written by Malte

September 15th, 2010 at 8:23 am

Frogster takeover by Gameforge – deal analysis

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Gameforge, a leading online games company with more than 100 million registered users has announced the takeover of 60% of Frogster AG at €25.00, valuing the company at €70 MM. The transaction makes strategic sense to Gameforge adding further (and new) products to its existing portfolio. However, equity analysts see the share price of €25 as too low and advise existing shareholder not to accept the outstanding takeover offer. The transaction values Frogster at 2.7x Sales 2010E and 10x EBITDA 2010E, respectively. Given the current hype for online gaming companies and the growth profile of Frogster AG, this offer does at least not seem to include a strategic takeover premium… Read the rest of this entry »

Written by Malte

August 15th, 2010 at 1:20 pm

Article: Why too much money is worse than too little

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Guy Kawasaki explains why too much money can be worse for entrepreneurs than too little. 

The reasons are:

  1. The more money you have, the more money you spend.
  2. You start to feel more secure than you should
  3. You start hiring people that have a great CV rather than the ability to build a company
  4. You start hiring too expensive people
  5. You start spending on expensive freelancers and consultants only to speed things up
  6. Entrepreneurship is not serial (get money – build company – sell company) but you rather have to handle many things in parallel. Read the rest of this entry »

Written by Malte

August 13th, 2010 at 3:22 pm