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A new way to buy another company

Posted: Tue Jan 10, 2017 12:38 am
by AndreStar2016
Hi,

Sometimes I want to buy a company,which is 100% or just more then 51% owned by a concrete person. Example: once I played and had 2.5 trillion dollars on cash and I wanted to buy another company which cost was around 2 trillion dollars,but I spent more then 4 trillion dollars to buy it,because every time I offered the owner to buy stocks he asked me to give him 2-3 times higher price
So,I want to suggest the new way to buy a company stocks: 1.to give player opportunity to offer owner of stocks to buy more then 5% at one time:like a while pocket of stocks 2.or just to be able to negotiate with owners to create one big company when everyone will control the same part of stocks

Re: A new way to buy another company

Posted: Sat Jan 14, 2017 8:51 pm
by WilliamMGary
we've been begging for a tender offer option.

Re: A new way to buy another company

Posted: Sun Jan 15, 2017 3:42 am
by David
WilliamMGary wrote:we've been begging for a tender offer option.
I have forwarded your suggestion to the dev team for their consideration already. But since it will affect the gameplay (making it easier for the player to acquire AI companies and making the game easier overall), if it is going to be implemented, it is likely to be a feature of the DLC, so that it won't affect the core game.

Re: A new way to buy another company

Posted: Wed Jan 18, 2017 3:56 pm
by ba127
Yes, I would really like a tender offer as well. Even if the demanded premium over stock price is 50%, 100% or even 200%, to balance it, at least I know how much acquiring this company will cost from the onset and decide if it's worth it, instead of the complete guess work of clicking BUY 10 times in a row causes now.

Re: A new way to buy another company

Posted: Thu Jan 19, 2017 1:40 am
by David
We are adding the function to wholly acquire a private company in the Digital Age DLC and may want to keep the mechanism of acquiring public companies the way it is for gameplay reasons. It should be harder to acquire an established public company, like in the real world.

Related news: http://www.polygon.com/2016/11/24/13743 ... i-takeover

Re: A new way to buy another company

Posted: Thu Jan 19, 2017 4:23 pm
by ba127
David wrote:We are adding the function to wholly acquire a private company in the Digital Age DLC and may want to keep the mechanism of acquiring public companies the way it is for gameplay reasons. It should be harder to acquire an established public company, like in the real world.

Related news: http://www.polygon.com/2016/11/24/13743 ... i-takeover
That's great to hear about being able to acquire a private company.

I think the hostile takeover scenario is much much rarer than friendly buyouts or mergers, but understood. It's definitely not a major issue, just a minor annoyance.

Re: A new way to buy another company

Posted: Thu Jan 26, 2017 8:40 am
by David
FYI: http://www.capitalismlab.com/forum/view ... =42&t=4086

New feature in Digital Age DLC: Acquiring a Private Company

You may acquire a private company by clicking the [Acquire Company] button on the Corporate Details report.

Re: A new way to buy another company

Posted: Wed Mar 01, 2017 3:00 pm
by derekg52
David wrote:
WilliamMGary wrote:we've been begging for a tender offer option.
I have forwarded your suggestion to the dev team for their consideration already. But since it will affect the gameplay (making it easier for the player to acquire AI companies and making the game easier overall), if it is going to be implemented, it is likely to be a feature of the DLC, so that it won't affect the core game.
That is a cop out, it should have been part of the subsidiary DLC. A business buying another business is one of the most basic and commonplace functions that occur in a market. There are plenty of ways to accomplish this, implemented correctly there is nothing to abuse. That said, it's up to a user whether they want to "abuse" a feature.

I have wanted to play like Warren Buffett since Cap 2 and it has never been implemented. Buying stock 5% at a time and driving up the price with every buy is not how it happens in reality. I want to start a business, make some money and then bolt on new subsidiary companies and grow them. Let me offer a 25% premium and have the shareholders decide. A corporation with a CEO or CEO + other C-suite leaders that have a >50% stake can reject it at any price if they wish.

The knife also cuts both ways, a user better maintain control or a buyout can occur. Maybe AI corporations could also try the "Buffett" approach and buyout smaller fish, either in their industry or across industries.

I just think there is plenty of realistic logic that can be added to get this done.

Re: A new way to buy another company

Posted: Tue Mar 07, 2017 1:31 pm
by derekg52
Is it possible to get an kind of updated comment? I think what I've laid out is quite reasonable. One of these features and I promise I will leave the topic alone, I just really want to play like Warren Buffett.

A couple other options:

1) Make the 5% buy limit a script parameter so people can change it at their own will.
2) Change the logic for how stock price is calculated after a purchase. It appears that the stock price increases 2% for every 1% bought. Maybe that could be capped.

I did this quick in Excel, but based on that logic, to get to the 75% takeover threshold (if bought 5% at a time), you've bid the company up over 4x it's original value! That is not real!

Share Price Ownership Stake
$10.00 0%
$11.00 5%
$12.10 10%
$13.31 15%
$14.64 20%
$16.11 25%
$17.72 30%
$19.49 35%
$21.44 40%
$23.58 45%
$25.94 50%
$28.53 55%
$31.38 60%
$34.52 65%
$37.97 70%
$41.77 75%
$45.95 80%
$50.54 85%
$55.60 90%
$61.16 95%
$67.27 100%

Re: A new way to buy another company

Posted: Tue Mar 07, 2017 1:48 pm
by David
You let the game run for a certain amount of time, the stock price will have a correction and you will be able to buy the next 5% at a lower price.

As for your suggestion for tender offer, we will consider it.

But our view is that having tender offer will just lower the difficulty level of the game, as it is already possible to buy out other companies in the current version, albeit at a higher price. From gameplay perspective, it may lead to short-term satisfaction of being able to acquire companies more easily. But it will possibly negatively affect the long-term playability because once the player has acquired all the companies he wants to acquire, the challenge is gone and the game will become boring.