I was going to mention IAC/Liberty - a lot of this happened to the computer hardware and game console industry in the 70s/80s/90s. Look at Commodore, Atari, etc, they used many different financial tools to continue existing.
I was going to mention IAC/Liberty - a lot of this happened to the computer hardware and game console industry in the 70s/80s/90s. Look at Commodore, Atari, etc, they used many different financial tools to continue existing.
This is a great call out. Even to this day, gaming is a capital intensive business, but has operated outside of what most VCs are willing to invest in. Tencent was able to build a massive equity portfolio in gaming by adapting its investment model to better match the hit-driven dynamics of the industry -- an opportunity missed by VCs and game publishers.
I was going to mention IAC/Liberty - a lot of this happened to the computer hardware and game console industry in the 70s/80s/90s. Look at Commodore, Atari, etc, they used many different financial tools to continue existing.
This is a great call out. Even to this day, gaming is a capital intensive business, but has operated outside of what most VCs are willing to invest in. Tencent was able to build a massive equity portfolio in gaming by adapting its investment model to better match the hit-driven dynamics of the industry -- an opportunity missed by VCs and game publishers.