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[DE]Steve

Partnership Announcement

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Well I've invested to much of my time and money to just walk away from Warframe. With the money involved with this deal we should expect Warframe to get better. But I'm not going to support the Devs by paying for another prime access because apparently DE just got more support from this deal then they did from the entire Warframe community. If I start seeing major improvements then I might spend more money on Warframe.

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So, PWE has no real influence over the game, and really just gets the rights to publish on XB1 and PS4 in China?

 

Sounds... remarkably fair to the players, at least.

Of course PWE has no influence over the game. They weren't involved in the transaction. The parent company, Perfect Online was.

 

That said, Perfect Online has the right to have the devs make changes to the Chinese version to "meet [their] satisfaction" as a part of this agreement. And those changes will only affect us if DE decides to.

Edited by Zeful

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I remember when Playfish announced this exact same thing, a little after one year of their online game smash hit opening, about their "partnership" with EA! They were also so excited! It was also "business as usual!"

 

Only 3 and a half years later, every single playfish employee was fired, and every single playfish game was shut down, permanently.

 

When it was first announced, I had immediately noted what EA normally does to companies, and was assured, "This time, it will be different!" It was not.

 

When this deal was first announced, I had immediately noted what PW normally does to companies, and was assured, "This time, it will be different!".

 

We shall see...

  • Upvote 11

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Since I know nothing about finance and this document might as well be written in Swahili for all the sense it makes, basically what I need to know from somebody who isn't employed by DE is: does PWE now have control of DE?

 

Because if they do, it's only a matter of time before they destroy Warframe.  PWE doesn't invest, they parasitize. It's all well and good to say they will not have design authority over the game, but really if they own a majority of the company, what's your option to defy them? Quit? And be replaced with some other mercenary development team that will follow orders.

 

:-/

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Whatever happens, I'll support you guys with all my heart! Reading the details really eased me quite a lot.Thanks Steve!

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Okay I'd like some crarity from DE_Steve on the following questions:

 

Who are/is  "Multi Dynamic Games" who now hold 58% of DE's common shares?

 

Who are "Ontario Ltd. 1 &2" a.k.a James & Michael Schmalz?

 

Just so we can actually understand who's behind the names.

 

 

EDIT: Nevermind, turns out a minute of google and wikipedia actually answers most of these:

For those wondering the same thing:

 

James Schmalz = Founder of DE

Michael Schmalz = President of DE

 

So we got that sorted out.

Edited by Flashie
  • Upvote 1

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source?

THE ACQUISITION AGREEMENT
The Board is pleased to announce that on 14 October 2014 (after trading hours), the Purchasers,
the Vendors, the Vendor Guarantors and Digital Extremes entered into the Acquisition Agreement
pursuant to which Multi Dynamic Games, an indirect wholly-owned subsidiary of the Company,
and Perfect Online conditionally agreed to severally but not jointly acquire the Sumpo Sale Shares
(representing 58.0% of the entire issued share capital of Digital Extremes) and the PW Sale Shares
 
Partnership Announced
Posted on 14/10/2014 - 12:00

Today, October 14, 2014, Multi Dynamic Games Group Inc. (a subsidiary of Sumpo Food Holdings Limited) and Perfect Online Holding Limited (a subsidiary of Perfect World Co., Ltd.)

 

 

PW and Sumpo foods are the same thing. Sumpo food wil do as PW tells them. MDG is just the name of sumpo foods "video games office", just as sumpo foods is the "food office" of PW. It is a little bit more copex than that, but i hope the following can help you understand:

 

PW>Sumpo foods>MDG

 

  • Upvote 2

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What I had really wanted to talk about before, but was shut down repeatedly by angsty commods:

 

If DE *really* wanted investors, why didn't they mention it to us? I'm sure there's plenty of founders and players who would've been DELIGHTED to invest in DE stock. I'm sure we would even be willing to match or exceed what the dumpling boys offered. Not any one individual, no, but there's literally thousands of founders, and many thousands more prime accessories who'd have gladly LEAPED at the chance to invest in our favorite game. The collective value would be huge.

 

So instead I'm left worrying about a company I don't trust owning a company I really liked, and wondering why we didn't get a chance to try and make this a truly independent game, rather than just another subsidiary of some conglomerate.

 

I would have been quite happy to invest. I'm certain I'm not alone. However, as far as I can discern, DE was never a publicly traded company.

 

So why didn't we get the chance?

  • Upvote 6

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On topic, No Idea. perhaps legal reasons and the like? Quite frankly the announcement we got seems like PR to me still. Cant wait to see where this leads. Also cant wait to see if there will be any restrictions put on our access to archwing. ie something like you can only use it x amount of times a day.

 

Sumpo holds the majority of the shares at 58%. These are supposta be non controlling, but we will see. 

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fa66af60ab4ad0f4f301b56dc6817965.png

This is from another topic from an individual speaking about PWE and DE. Credit goes to Letter13

 

Why can so many people not read? The Class B shares have no voting rights. Which presumably means that the common shares do have voting rights because it doesn't say that for them. And Sumpo/PW own 61% of those shares as well.

 

 

Okay I'd like some crarity from DE_Steve on the following questions:

 

Who are/is  "Multi Dynamic Games" who now hold 58% of DE's common shares?

 

Who are "Ontario Ltd. 1 &2" a.k.a James & Michael Schmalz?

 

Just so we can actually understand who's behind the names.

 

James Schmalz is the CEO of DE. I guess Michael is related to him.

Edited by Azure.M
  • Upvote 6

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So as anyone who plays Warframe would, I immediately assumed this post's title meant armageddon was upon us DE was selling out. Though I have some faith in the integrity of DE to not back stab it's players so I went through the documents thoroughly; and by thoroughly I mean I read every... single... letter (and number).

 

From the looks of it, DE didn't sell out, and though there is the POTENTIAL for a long-term backlash on both DE and Warframe, it doesn't seem likely.

 

Summary of what is in the document, as far as I understand:

 

DE is selling 61% of it's shares to 2 companies. One is a company that is basically all about chicken. This chicken company had some problems in recent years and is INVESTING in Digital Extremes as a means to avoid some of their losses, and also to add onto future profits. The chicken company is getting 58% of Digital Extreme's Type B shares *WHICH DO NOT INCLUDE VOTING RIGHTS / PRIVILEGES*. The second company is a company that also deals with games and game engines, who were pretty much brought on board by the chicken company to give them a hand in understanding stuff related to games, since they are a chicken company. The game company mentioned is getting 3% of Digital Extreme's Type B shares *WHICH, ONCE AGAIN, DO NOT INCLUDE VOTING RIGHTS/PRIVILEGES*, as well as rights / privileges including but not limited to: exclusives rights to distribute Warframe on console in certain areas (namely China).

 

Another notable part of the documents is a mention that DE is currently working on another self-owned Free-to-Play title. (That's right people, another game besides Warframe!)

 

My view on all of this is as follows; DE is selling 61% of their stocks (WITHOUT voting rights), presumably to gain some money to help with funding of the game that they are currently working on other than Warframe. This should have no negative impact on DE's creative rights or funding for their projects. It may even be positive for funding as it prevents their new game from draining money away from working on Warframe, at least for a while.

 

Everything here is based on my understanding of what I have read, which may not be accurate, but I believe is. My hopes lie with the rest of the community in that this will only be beneficial towards Warframe and DE as a whole.

 

Tenno, remain calm and keep space-ninja-ing.

  • Upvote 1

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It's hard to decide if I should be worried or excited. We'll either see some cool stuff on the way (maybe faster too) or we'll see some nasty changes. I believe in my favorite dev team.

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No sense borrowing trouble. Let's see how this pans out; after all, when Perfect World acquired Runic Games, there were a lot of dire predictions about the Torchlight franchise -- cash shop, character upgrades disguised as DLC, pay-to-win garbage, et cetera... and of course it had none of those things. It was just a really darn good game (and probably bigger and better than Runic could have financed on its own).

 

So good luck, Digital Extremes! I hope this works out to everybody's benefit.

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a faint smell of "thread locked" lingers in this thread...

I don't know, maybe because they thought we wouldn't?

To be fair, they're recent negligence to address some issues like parkour and mod balance might have been severly off-putting for some founders.

But companies are a different story. Most of them are in it for the money, and are thus easier to please.

As I said earlier, I truly don't know. I could come up with theories all day, but it won't get us anywhere.

Edited by Lukap99

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a faint smell of "thread locked" lingers in this thread...

I don't know, maybe because they thought we wouldn't?

That may be it, or DE wanted to keep that financial information private until it was set in stone. 

 

Also calling the comods angsty is not a good idea. 

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There's no reason this should be locked. It was stated that it would not be allowed for discussion "until after DE announces...", which they did so, today.

 

Ergo, the reason I'm posting now, and, ergo, the reason it shouldn't be locked.

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There's no reason this should be locked. It was stated that it would not be allowed for discussion "until after DE announces...", which they did so, today.

 

Ergo, the reason I'm posting now, and, ergo, the reason it shouldn't be locked.

That wont stop them from locking it. lol unfortunately threads like this are still getting locked today.

 

Edit. it got merged. GG mods.

Edited by armedpoop

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Players having a game company shares? never heard about it but mostly, isn't it being on the public markets for simple little investors? or something like that I don't remember much from those things.

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-These have, apparently, no voting right within the company itself.

 

This is incorrect.  Class B shares have no voting rights, but those aren't the only shares they bought.  Further down in the document on pages 10 and 11, you see the breakdown of before and after the acquisition of the voting shares which after the acquisition will be majority owned by Sumpo Foods(58%) + Perfect Online(3%).

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