Game of War/Kate Upton


#1

What is this game and why can they afford Kate Upton/$5M Super Bowl commercial slots?


#2

Machine Zone (the company that made Game of War) is based here in SF. They generate about $500M per year in revenue and raised about $14M at close to a $3B valuation. They went through Y Combinator in 2008.

So… that’s how.


#3

The better question is, why aren’t you playing?

I started a strats group for it!


#4

Wow… Is it free to play?


#5

It’s a mobile game. Free to download with in-app purchases.


#6

Wait though… KING (candy crush) trades at less than 2x sales (4bn valuation >2bn sales)… Why is this company worth 6x sales?

I’m always fascinated by premiums companies like this are valued at. What’s in the pipeline that will make this company worth $3bn?


#7

You’re comparing public valuation with venture capital. I’m sure during KING’s early investment of their $40-something million series A, the valuation was much higher than their sales figures.


#8

Please school me, where does the valuation go when the company goes public? Less risk premium since there is a hard measure of “worth” with public shares?


#9

I’m sure you’re aware of the venture capital situation here in silicon valley. What more needs to be said?


#10

Just boggles my mind thinking about it. Thanks for the info.


#11

@Vocino in your opinion is this tech bubble 2.0 or have we learned from the past?


#12

I don’t know if I would call it a bubble. Certainly it’s not like the early 2000s. I would say there are some markets that are growing like crazy and are getting incredibly rich VC.

Anything mobile is huge right now because the delta between hours spent and consumer or advertising dollars spent is huge so everyone is scrambling to insert themselves in there.


#13

In my opinion, biggest difference between now and 2000 is that in 2000, people like us had our 401(k)'s pegged to the future of Pets.com and the like. I don’t think the VC activity in Silicon Valley has even close to the same impact on the capital markets. If there is a “bubble” and it were to burst, a few really smart people would lose a lot of money, but I don’t think the ripples would be as widespread.


#14

You make a really valid point here. I hate to bring it up, but I feel like this is very much similar to the number of “early access” games we see anymore.

Put together a solid game (playable, but certainly not full), allow revenues from said game drive production, and go from there. Mobile applications have been doing this for a while, albeit they are a little more complete as they don’t need to be as expansive as a PC game.

-EDIT- Err, forgot to mention that the advertising in “early access” is of course the free channels like Steam, Word of Mouth, etc.