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Jagex Sold!

Quick find code: 14-15-398-66109794

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Runewalker
May Member 2016

Runewalker

Posts: 39Bronze Posts by user Forum Profile RuneMetrics Profile
Copy of article from massivelyop.com


RuneScape studio Jagex has been sold, again, this time valued at $350M


Back at the beginning of 2019, we covered the news that RuneScape developer Jagex was
being put up for sale by the Chinese holding company that purchased it back in 2016. The reason, as we noted then, wasn’t that the UK-based Jagex had performed poorly; it was that Shanghai Fukong struggled in 2018 because of the flagging Chinese communication sector and gaming freeze in the region, leading to reduced revenue, falling stocks, and even the resignation of the company chairman in December. In fact, Jagex spilled a lot of ink reassuring everyone that Jagex and RuneScape itself would be fine.

We’re still hoping that’s the case, but at least Jagex will avoid Fukong’s fate. At the end of June, Fukong announced that it would be selling Jagex to “US Platinum Fortune,” valuing it at $350M US ($50M more than it paid back in 2016). This is likely a mangled translation of Platinum Equity, which as Redditors point out is a California-based private equity investment firm. According to Chinese publication Yicai Global, Jagex generated 99.5% of Fukong’s revenue last year, but the Chinese company has been mired in 57 (!) “litigation and arbitration” cases relating to “financial and credit disputes.” Yikes.

09-Jul-2019 12:23:53 - Last edited on 09-Jul-2019 12:27:03 by Runewalker

Thunder Jinx
Feb Member 2010

Thunder Jinx

Posts: 14,189Opal Posts by user Forum Profile RuneMetrics Profile
That name sounds like another capitalist investment bank that's only looking to milk the company before selling it off for a profit.
Not sure that's what I would call good news.
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09-Jul-2019 12:48:51

Blackwing
Nov Member 2012

Blackwing

Posts: 40,726Sapphire Posts by user Forum Profile RuneMetrics Profile
Vicious cycle of owning Jagex:

1. Buy Jagex at a ridiculous price.
2. Add more MTX, dailyscape events etc stuff that make the game appear to be doing better than it is, because only gamers tend to understand what they actually cause.
3. Sell Jagex at an even more ridiculous price than what you bought it for -> profit.
"As for forktails, bait them thusly: pound a stake in the soil, bind a goat to it, then hide ye in nearto shrubbery posthaste."

09-Jul-2019 14:14:20

Daibhi
Sep Member 2017

Daibhi

Posts: 1,098Mithril Posts by user Forum Profile RuneMetrics Profile
Thunder Jinx said:
That name sounds like another capitalist investment bank that's only looking to milk the company before selling it off for a profit.
Not sure that's what I would call good news.


Mhm. While we have our opinions regarding the MTX obsession I do think, deep down, Jagex does at least care for and respect the community - it's just the ones that buy them pulling the string seem to be the ones that push them towards MTX in order to make sure they get their money back and then some.

I don't have any hope it will be any different with these new owners, I wish a company that understood and actually cared about MMOs/gaming and not one who only buys them for the sole purpose of treating it like a cash machine bought Jagex for once - just for a change.

09-Jul-2019 14:39:10

Dilbert2001
Jun Gold Premier Club Member 2006

Dilbert2001

Posts: 10,172Opal Posts by user Forum Profile RuneMetrics Profile
Miu said:
Dilbert2001 said:
Old news, reported all over all Chinese media and even Reddit already.

And the price tag for Jagex is $530 mil, not $350 mil.


Old news, you already posted about this all over the forums already.


Don't see what and who posted on Reddit has anything to do with these RSOF, except I just pointed out the information users of the RSOF may be interested to check and verify themselves. :)

09-Jul-2019 20:41:41

Jeremy Cheng
Aug Gold Premier Club Member 2013

Jeremy Cheng

Posts: 10,678Opal Posts by user Forum Profile RuneMetrics Profile
Runewalker said:
Copy of article from massivelyop.com


RuneScape studio Jagex has been sold, again, this time valued at $350M


Back at the beginning of 2019, we covered the news that RuneScape developer Jagex was
being put up for sale by the Chinese holding company that purchased it back in 2016. The reason, as we noted then, wasn’t that the UK-based Jagex had performed poorly; it was that Shanghai Fukong struggled in 2018 because of the flagging Chinese communication sector and gaming freeze in the region, leading to reduced revenue, falling stocks, and even the resignation of the company chairman in December. In fact, Jagex spilled a lot of ink reassuring everyone that Jagex and RuneScape itself would be fine.

We’re still hoping that’s the case, but at least Jagex will avoid Fukong’s fate. At the end of June, Fukong announced that it would be selling Jagex to “US Platinum Fortune,” valuing it at $350M US ($50M more than it paid back in 2016). This is likely a mangled translation of Platinum Equity, which as Redditors point out is a California-based private equity investment firm. According to Chinese publication Yicai Global, Jagex generated 99.5% of Fukong’s revenue last year, but the Chinese company has been mired in 57 (!) “litigation and arbitration” cases relating to “financial and credit disputes.” Yikes.

09-Jul-2019 20:51:59

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