Pulled from the PS2 thread...
according to this Higby has left the company.
I'm also hearing word that EQ2 devs are being let go en masse with the possibility that the game itself might be shut down.
Like I said in
this post, private venture firms when they do this generally quickly move to trim waste and underperformance in order to maximize profit, identify valuable assets and put them first while gutting the ones that aren't worth the effort. There's usually a 2 or 5 year plan to make the company profitable and attractive to potential buyers at that time. Basically, think real estate house flippers. That's what companies like this do.
Exactly. They will 'trim waste' by laying off employees. They don't do this with an innate knowledge of who does what and what value they provide within the company, they just look at expense / income breakdowns.
This fund is not going to keep SOE long term. Funds are not in the business of running other companies, they want to make money and move on to the next investment.
There are really two options here :
1 - They cut costs and make it profitable, then sell it off.
2 - They divide up the IP and sell it off piecemeal. For example, they could take Planetside and sell it to EA, sell EQ2 to someone else, etc. Some of these buyers may buy the SOE IP for the express purpose of eliminating their competition. When EQ2 players log in to see ads of 'Get 2 free months if you sign up for X' ads, that's your sign.
It can get more complex. Funds have been known to invest heavily into one company, then buy out and dissolve that companies competition. For example, one might invest heavily in a company invests in real estate (REIT). Then buy out an undervalued retailer and sell their property to the REIT dirt cheap.
This stuff never works out for the consumers who like the company that is being bought out.
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