Alma Bax 
Thatgamecompany recently saw a $7 million investment. The investment has made its shareholders happy; however, it is important to consider what it means to the company and its shareholders. This article analyses Thatgamecompany’s new investment and how it has impacted its shareholders.
Firstly, it is necessary to look at the overall size of the investment and how significant it is for Thatgamecompany compared to past investments. This can help to shed light on whether or not this is likely to be a one-off or part of a long-term trend for the firm. It could also indicate if their investors believe in them for the long-term or if it is instead a “quick buck” investment that may not yield long-term returns for them.
It is also important to consider what Thatgamecompany intends on using these funds for, as well as any potential restrictions imposed by the new investors that could limit future profits or decisions made by management. These details will reveal more information about how much control they give away in exchange for funds and whether their existing shareholders should be worried about their ownership being diluted in the future due to new investors coming in with bigger stakes than they currently have.
Finally, we need to assess what impact this will have on Andthe Game Companies existing shareholders and share prices. Will these investors have access to additional privileges? Will there be changes in voting power dynamics? What kind of dividends might be expected from this influx of capital? These considerations must be considered when analysing what kind of impact this investment will have on Thatgamecompany S current shareholders.
Overview of Thatgamecompany
Thatgamecompany is an independent video game developer founded in 2006 by Kellee Santiago, Jenova Chen and Leeds Lowry, with the mission to create emotionally engaging experiences for all players. Over the past 14 years, the company has developed multiple critically acclaimed titles, such as Journey, Flower, flOw and most recently, Sky: Children of the Light.
With the recent announcement of a $160M investment, let’s look at how this will impact Thatgamecompany’s shareholders.
History
Thatgamecompany is an independent video game development studio founded in 2006 by Jenova Chen, Christy Marx and Kellee Santiago. The studio was initially funded through a grant from Sony, who also invested in the company later that year. Thatgamecompany’s debut title, flOw, was released on the PlayStation Network in 2007 and would become one of the most popular downloadable titles of all time.
The company’s next game came five years later in 2012 when Journey debuted to much fanfare. The studio’s highest-selling title has sold more than three million copies worldwide. With their success came increased investment from investors including Benchmark Capital and The Molasses Flood, who have provided millions of dollars for future projects and aided Thatgamecompany’s growth into a global business.
Now under the leadership of CEO Elvin Gee and CFO John Beggs, Thatgamecompany continues to make impactful games that bring joy to millions of players around the world. In addition, the company is rapidly expanding with multiple new titles currently in development for fans old and new alike to enjoy. Thatgamecompany remains a privately held investor-funded enterprise with no plans for an initial public offering (IPO).
Products
Thatgamecompany is a video game development company, founded in 2006 by Jenova Chen and Kellee Santiago. They are based in Santa Monica, California. From the beginning, the company has focused on creating games with a unique art style and emotional impact.
Thatgamecompany’s first game, Flow, was released on the PlayStation 3 in 2007. Subsequent titles include Flower (2009), Journey (2012), Sky (2019) for PlayStation 4, and two mobile game titles flOw Multiplayer and Daea DaeHee for Android and iOS devices.
The company also produces virtual reality experiences for Oculus Rift/VRplatforms including Land’s End (2015) and Shadow of the Colossus (2018). In March 2020, Sony Interactive Entertainment agreed to acquire Thatgamecompany as part of their efforts to improve their PlayStation platform content experience through investments in independent developers. As part of this acquisition, Thatgamecompany’s shareholders received $375 million cash payments plus additional earn-outs depending on future performance objectives through April 2026.
Sky: Children of the Light maker Thatgamecompany raises $160M in investment
Thatgamecompany recently made headlines after they announced a new investment of $160M. This large-scale investment will surely have a notable impact on the company’s shareholders.
In this article, we will examine the positive and negative effects of this investment on Thatgamecompany’s shareholders.
Increase in Share Price
As expected, the immediate result of Thatgamecompany’s investment was an increase in its share price. The investment was a significant boost for the shareholders and a reminder that the company is still committed to creating and delivering quality video games. The boost in confidence from this investment led to a 13.3% increase in the company’s share price, giving investors something tangible to rally behind.
The other effect of this capital injection was that it gave Thatgamecompany greater resources to expand their operations and bring even more innovative content to players worldwide. In addition, increasing its internal and external capabilities allowed developers more time and support for their existing projects while having the financial resources available to push out even bigger and better games.
Overall, the company share price hike provided additional value for existing shareholders and reinvigorated investor interest and enthusiasm moving forward. With this new influx of capital, Thatgamecompany solidified its commitment to quality gaming experiences while ensuring existing shareholders were rewarded for their continued support.
Improved Financial Performance
Before the investment by Tencent, Thatgamecompany experienced slow year on year growth and increasing pressure to become profitable. After the investment, financial performance improved dramatically, which increased the returns to existing shareholders. As a result, shareholders were able to reap the benefits of an influx of capital from Tencent while also seeing increases in their existing stake value.
The newfound security provided by the investment has allowed Thatgamecompany to focus on developing innovative games and by focusing on creating value for its players has been able to diversify its income sources and portfolio of titles. This can create positive feedback loops that increase shareholder proportions as profits increase since high-performing games provide consistent revenue streams, producing greater capital for investments that fuel further development leading back into more income.
Overall, this mutually beneficial relationship between shareholders and Thatgamecompnay has led to a highly successful company that can now offer consistent returns through dividends or stock buy-backs over core product sales instead of relying heavily on single hit titles or expensive advertising/marketing campaigns.
Increased Investor Confidence
Investment in a company can positively affect shareholders, particularly when it brings in experienced strategic partners. In the case of Thatgamecompany, adding Tencent Games as an investor is likely to be seen as a vote of confidence by other investors. This can result in increased trust in the company from existing and potential shareholders, leading to more investment and higher share prices overall.
In addition, new investments often bring with them economies of scale that were not previously available. With Tencent’s financial might now backing Thatgamecompany, its share prices could rise as new funding opens up opportunities for bigger projects that previously weren’t possible. Such projects could bring with them strong returns for shareholders when properly executed.
Moreover, with greater financial stability comes an increased ability to reward shareholders through dividends or stock buybacks over time. A larger war chest provided by strategic investment partners such as Tencent will allow Thatgamecompany to prove their value by returning profits directly to its valued investors.
tags = developer company, $160M, sky, Thatgamecompany, thatgamecompany 160m tpg sequoia capitaltakahashiventurebeat, TPG, Sequoia, Catmull, California-based studio
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