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'We don't have shareholders, but we also don't think about them,' Larian Studios uses its stage time at the DICE Awards to speak out against a brutal industry climate (www.pcgamer.com)

submitted 8 months ago by [email protected] to c/[email protected]

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[–] [email protected] 1 points 8 months ago (1 children)

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.

[–] [email protected] 20 points 8 months ago (1 children)

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

[–] [email protected] -4 points 8 months ago

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.