that plans to focus on games based on licensed film, TV and music
properties, announced on Monday that it has raised $400 million
first round of financing, led by ABRY Partners.”
Whatever happened to bootstrapping a company? After sinking $400 million into a company that has yet to create a single product, investors will likely be asked to ante up another hundred million dollars or two before the company ever turns a profit. Isn’t there a better way of spending half a billion dollars?
True, the Los Angeles-based video gaming company has put together an all-star roster of talent, including COO Nicholas
Longano, who previously developed the Massive Incorporated in-game ad network, and former Activision CFO Bill
Chardavoyne. True, the company has scads of video games in the developmental pipeline, some of them based on popular cinema releases. But $400 million?
That just seems like an awfully big bet on the notoriously fickle tastes of adolescent video gamers.
[image: Brash Entertainment]