this post was submitted on 16 Feb 2024
627 points (98.5% liked)
Games
32603 readers
1207 users here now
Welcome to the largest gaming community on Lemmy! Discussion for all kinds of games. Video games, tabletop games, card games etc.
Weekly Threads:
Rules:
-
Submissions have to be related to games
-
No bigotry or harassment, be civil
-
No excessive self-promotion
-
Stay on-topic; no memes, funny videos, giveaways, reposts, or low-effort posts
-
Mark Spoilers and NSFW
-
No linking to piracy
More information about the community rules can be found here.
founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
Can't see how it would harm the company. Stocks and shares are just a way to raise money in a company. I'll sell you x% for $yk and own that amount now.
Even with normal shares 30% is a minority stake especially if a single entity owns the other 70% (ie. You can express your opinion but I outvote you every time). Unless Larian are planning to raise additional funds by selling equity and need the stock price to remain high for that reason, Tencent are free to sell their portion without any impact to Larian. (Heck a drop might even let Larian buy itself back)
If Tencent sell its shares, it would make the share price plummet, which will make it harder for the studio to get money by selling new shares.
They're not publicly traded, and the only shares are the ones that Tencent owns. The shares are worth whatever someone buys them for. The price doesn't fluctuate because there's no market with which they are traded on
You are half right, half wrong.
It is true that a non publicly traded firm won't see an immediate effect if one of the shareholder leave the ship, but businesses work on trust. If Tencent sell its share, it is a sign that it doesn't trust the studio anymore. Thus, potential private investors, like banks, will be more hesitant to work with them, and will ask for higher rates to compensate for that perceived lose of trust. Thus, hurting the Studio.
Shareholders have a right to sell their shares. If there is no other buyer, then the company will have to pay them for it. They may not have enough liquid capital to pay off 30%. Other assets might have to be sold off, which may make it difficult to operate.
Huh?
I did a little more research, and it tends to be only specific circumstances and shareholder agreements, but there are times when a shareholder can force a company to buyback the shareholder’s stock.
https://achkarlaw.com/what-to-do-if-company-refuses-to-buyback-shares/