Sigh...
Thing is you seem to be reading a few News Articles and now think you know how Finances Work. And frankly you dont.
1.
It does not really matter if Tencent bought those Shares directly from Frontier or just from Public Market.
The Fact is that Frontier did give out these Shares and Received Money for them.
And Tencent now Owns these Shares. Which effectively Means they Own these 8% of the Companies Value.
And the Company Value is the Relevant Part right now.
Because the Price at which Shares are Valued Represents how Valuable Investors consider this Company to be as well as how likely they think it is that this Company will Grow in the Future.
Which means that the more Value your Shares lose. The less likely it is that you will get Money for Future Projects.
Already Wrote that Twice without you getting this. So let me Spell this out clearly.
This is NOT about what Money they got so far.
Its about what Money they can get in the FUTURE.
2.
Problem with that is that Revenue is not the same as Profits.
Revenue just means how much Money comes it.
Gladly this Info is halfwat Public.
So we know that while Frontier made 90 Million of Revenue. It only Produced a Profit of about 20 Million.
Frontier also states to have 40 Million of Free Capital for Future Investments.
Now. If this was the Numbers just for Elite Dangerous that would be quite Good.
But since this is the Combined Numbers for several Games its actually not as Good.
Because Games that Operate on a "Sell once" Basis do not Produce Continues Profits unless they get new DLCs and Extensions Added.
And right now the Shares Show that Investors are Convinced that Frontier is unlikely to really Produce much more Value in the Future.
3.
Thats the Problem Mate.
""And sorry to break it to you but ED factors little more than as a “keep the lights on” in their finance reporting.""
If this i True it means that ED is not Receiving any Notable Investments.
Because guess what.
A New Expansion needs a Dev Team to work on it in addition to just Keeping the Lights on.
Which Requires Money.
And According to Braben. Frontier is doing Major Development and wants to Bring really Big Features to Elite Dangerous in the Future.
So Question for you Mate.
How can it be that the Money going into Elite Dangerous is effectively little more than "keep the lights on" when Braben Claims that they are Developing Nonstop on all these Big Features he Promised ?
Reading yes, news articles no. Obviously before discussing the subject I went and took a squiz at FDevs financial reporting (which legally has to be correct), I suggest you do the same.
1. They didn't buy "directly from Frontier", that's not how it works, and issuing more stock is not a task taken lightly and involves
all current shareholders whether you're an initial investor or Joe Bloggs with the 50 shares down the road.
My point was simple; whether they were involved in the IPO or bought up stock overtime on the market, it makes no difference to Frontier's bottom line right now. The same as if you decided to buy 3m shares if you saw them available right now wouldn't give Frontier any money.
Take that concept to the logical conclusion that whatever todays market value of FDEV stock is, it's not related to any internal cash flow, just the public value of the company.
So you're still. Talking. About. Market Cap.
2. Your numbers are wrong, I refer you to the document I alluded to above.
3. It is true, I refer you to the document I alluded to above.
Where is the disconnect in your thinking that a business can only make money though investments? That Frontier sit, cap in hand, waiting for the next investor before being able to pay staff and run a project? ...Why do I care?
