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Partnership Announcement


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Dearest Tenno-


Three months ago many of you were surprised to learn of a proposed investment in Digital Extremes. Today I am confirming that, after a long phase of changes and negotiation, this investment has become a reality.


Here's the official announcement: https://warframe.com/news/partnership-announced


I’m more comfortable in pink shorts than a suit, so lucky for you I don’t have to attempt an explanation of the deal. You can actually read it for yourself here: http://www.hkexnews.hk/listedco/listconews/SEHK/2014/1014/LTN20141014641.pdf


What does it mean for Warframe, for you, and for me?


For me, it’s business as usual, with zero changes in DE management and no outside interference whatsoever. After the shock wears off I simply go back to drowning in coffee, crunching on the Archwing update and building end-game content we desperately need (I might be sneaking some into Archwing at the last minute actually).


For you, I hope you read the deal and realize it’s not the doomsday scenario you may fear. I hope you agree to at least wait and see what it means and I hope you engage with us and our community on what is important to you as a player as Warframe and Digital Extremes grows from this partnership.


As for Warframe... well it’s getting an Orokin Reactor installed. It will have more resources to increase quality and scope. It will continue just as it began, as a labor of love. It will continue to be built by the same passionate developers you know while being guided and challenged by the most passionate and positive gaming community we’ve ever experienced.


 On behalf of the team we can’t thank you enough for the tremendous support and faith you’ve had in us and in building this game alongside us over the past two years.  I hope you stick with us as Warframe continues to grow under our control.  Stand with honor, Tenno.



Edited by DEZwak
Added www.warframe.com link
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Well, I don't speak for everyone, but I'm of a mind to wait and see how it pans out. It certainly isn't doom's day, but we have no idea what the long-term repercussions will be, if any.


If anything, this may potentially be beneficial for everyone. I hope that's the case.


So, my dear fellow Tenno, hold your horses, and let's approach this calmly. Ninja-style.







So... more coffee for the Devs?




For those who can't be bothered to click...

After skimming the document, two numbers jump out:

$73.2 million





I also see Mr. Steve Sinclair's name on it. 


I trust he knows what he's doing, and what the details of the deal are. Let's not jump to conclusions. It could be possible that it's for the benefit of the game at large. This is, after all, not just a product to them: It's their livelihood, and it's their, as Steve so aptly put it, "Labour of love". 


So chill. Don't read something into it that isn't there. 


Oh, and Steve.... Thanks for being so transparent with us. The fact that you've provided an online document providing the whole detail of the deal is a heartening sign of transparency that I didn't expect to see. I believe in this regard, I speak for many, in that we all hope this is for the best of Warframe, a game we've come to grow (perhaps almost unhealthily) attached to. 


May the portals to the Void never close, my friends;

May the secrets of the Orokin never expire; 

May we never run out of cloned soldiers,

Or poorly paid capitalist mercenaries-for-hire.


Viva la Warframe, Tenno.





Edit's Edit:


For the sake of those who find it slightly harder to read, allow me to attempt to summarise:


-61% of DE's share has been sold. 58% to Sumpo, 3% to Perfect Online.


-These have, apparently, no voting right within the company itself. Correction: It seems that's the Type B shares, and they actually DO have voting rights! Oh, dear me. But, I have it from other players that PWE is a separate entity from Perfect Online, which is the company that's in question in the deal, and they're more credible than PWE. (Ask Moderator-Doge)


PWE = Perfect World Entertainment.


The company involved in this deal is Perfect Online Holdings / Perfect World Beijing, a different entity than Perfect World Entertainment.

PWE is involved with North American video game publishing, while Perfect World Beijing (Perfect Online) is involved with Chinese video game publishing.


Yes, PWE did ruin Blacklight. 


No, PWE isn't actually involved in this deal. Their parent company located in China is.


Also this:



As far as companies go, Perfect World Beijing / Perfect Online is really not that bad. Certainly nowhere near the scourge that is their North American child company.


We're dealing with Perfect Online, who are not the same people as PWE. PWE is their North American subsidiary. 


Perfect Online has a decent reputation. They published Torchlight and Dota 2 in China, not a single change. 




-The reasoning for the acquisition is apparently because of Sumpo specifically being a chicken-industry. Their sales has been suffering because of recent... health issues, so to speak, in the People's Republic of China (henceforth, PRC). Thus, it seems pretty convincing, seeing that it is Sumpo with 58% of the share, and PW with only 3%.


-The acquisition is so that Warframe can be distributed in China. There's an issue of western media and western-made products making its way into China, as it's very tightly controlled by the government. However, there's one party here with one foot already in the door: Perfect Online/Perfect World Beijing. So, Sumpo probably is an investor of what they see as a booming industry, hoping to earn money "On the side", to alleviate their dropping revenue. Seems a rather wise choice, honestly speaking, considering China is a huge market, with relatively few products compared to the Western countries. 




The summary is this: Sumpo needs to make money, something not related to chicken. It wants to invest in games, and thinks Warframe rocks, so they want to acquire DE's share. This acquisition is so that Sumpo can distribute Warframe in China exclusively. However, they can't do it by themselves, as chicken is all they know. So, they get Perfect Online. 


Speculatively, nothing is going to change: Perfect Online is what is probably a more complex version of a "Retailer". Basically, it just distributes a product or service, without being able to modify (at least, extensively and noticeably) what it sells. Probably they'll have their own promotions and stuff, though. But I don't know about that.


If there's any mistake, feel free to drop me a PM to correct my understanding. This is here for everyone's benefit.


Also, it seems like Digital Extremes has another F2P game in the works. WOOT WOOT! 

Edited by Calayne
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So as far as Sumpo is concerned:


Upon Closing, Digital Extremes will become an indirect 58.0% owned subsidiary of the Company, and 
the consolidated profit or loss and assets of Digital Extremes will be accounted for in the consolidated 
financial statements of the Group.
PWE itself only has 3% of the voting shares.
Edited by SilentMobius
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Thank you for the update. I really hope they do not interfere with the beautful relationship you have fostered with your loyal fans and game players. I look forward to seeing the positive benefits of this relationship, and hope this game and company continue to thrive and deliver quality experinces for years to come.


Hold fast, Tenno. Shinobi are survivors.

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So as far as Sumpo is concerned:



PWE itself only has 3% of the voting shares.



Under the "LISTING RULES IMPLICATIONS" section, 2nd paragraph : 


Upon Closing, Digital Extremes will become an indirect non-wholly owned subsidiary of the Company 
and the common shares of Digital Extremes will be owned as to 58.0%, 3.0%, 26.1%, 2.8%. 3.9% 
and 6.2% by Multi Dynamic Games, Perfect Online, Ontario Ltd. 1, Ontario Ltd. 2, Ontario Ltd. 3 
and Digital Extremes Employee Share Trust, respectively; and the Class B Special shares of Digital 
Extremes, which carry no voting rights in Digital Extremes, will be owned as to 58.0%, 3.0% and 
39.0% by Multi Dynamic Games, Perfect Online and Ontario Ltd. 1, respectively.
Edited by Neah
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