My original blog (which was really just a repost of Hyona's work) is located here .
I know many of us (including myself) have been chomping at the bit and waiting for this information since July. Some of us have already done our doomsaying. Some have left Warframe (or at least said they left), and some have been waiting patiently. Some have called me insane as a result of my last (and only) blog post. Some think I do not know what I am talking about. Some think I work for DE or PW. Some think I am just a fanboy of DE for refusing to give into the paranoia bandwagon.
I have only one thing to say to that.
I do not read the Wall Street Journal to find information on Warframe builds, on customizing my Boltor Prime, or what glitches need fixing in Warframe.
Similarly, I do not read the various gaming websites for in depth and detailed information regarding the murky and complicated nature of the business world.
Gaming websites who have published misinformation regarding Perfect World and their dealings with Digital Extremes are founded on one thing and one thing only. Getting page clicks. Page clicks mean revenue for the gaming websites. And sensationalist, uninformed opinions of the writers are what gets those page clicks.
The megathread (or threadnought) regarding Perfect World and their uncertain relationship with Digital Extremes was filled with many passionate opinions of customers, but it was also filled with many anecdotes and unsubstantiated rumor.
Now it is time to see just how correct (or incorrect) everyone was. Let's get into the translations, shall we?
IN RELATION TO THE ACQUISITION OF 58% OF THE ENTIRE
ISSUED SHARE CAPITAL OF DIGITAL EXTREMES
This is pretty self-explanatory. Both Sumpo Food Holdings and Perfect World is going to acquire 58% of the Issued Share Capital of Digital Extremes. This lines up with the original notice of their pursuit of all Outstanding Shares (back in July). Apparently all Outstanding Shares of DE was 58% of the company.
This is not unusual.
The Board is pleased to announce that on 14 October 2014 (after trading hours), the Purchasers,
the Vendors, the Vendor Guarantors and Digital Extremes entered into the Acquisition Agreement
pursuant to which Multi Dynamic Games, an indirect wholly-owned subsidiary of the Company,
and Perfect Online conditionally agreed to severally but not jointly acquire the Sumpo Sale Shares
(representing 58.0% of the entire issued share capital of Digital Extremes) and the PW Sale Shares
(representing 3.0% of the entire issued share capital of Digital Extremes)
Multi Dynamic Games is an indirect subsidiary of Sumpo Food Holdings (so we don't really have to worry about Sweet-and-Sour Zephyr on the Menu). And of course, Perfect World.
As you can tell, the legal documentation states that Multi Dynamic Games will acquire 58% of the entire issued shares of DE, with Perfect World holding 3%.
This is what we have been freaking out over? Three Percent?
Really? All that energy and time wasted on the forums over 3%?
"Oh, but Lone Tenno Operative! You don't even know! Even if Perfect World owns 3% of their shares, that's still way too much! They're going to control Warframe and run it into the ground!!!!!!!"
Upon Closing, Digital Extremes will become an indirect non-wholly owned subsidiary of the Company
and the common shares of Digital Extremes will be owned as to 58.0%, 3.0%, 26.1%, 2.8%. 3.9%
and 6.2% by Multi Dynamic Games, Perfect Online, Ontario Ltd. 1, Ontario Ltd. 2, Ontario Ltd. 3
and Digital Extremes Employee Share Trust, respectively; and the Class B Special shares of Digital
Extremes, which carry no voting rights in Digital Extremes, will be owned as to 58.0%, 3.0% and
39.0% by Multi Dynamic Games, Perfect Online and Ontario Ltd. 1, respectively
These were Class B shares the entire time. Do you know what a Class B share is?
Well, it pretty much spells it out in the agreement. Neither Sumpo Food Holdings, or their subsidiary Multi Dynamic Games, or Perfect World will have any voting rights in regards to Digital Extremes.
That means that even with 3% of DE's shares owned by Perfect World, they are Class B shares and hold no voting power over the company.
That was 336 pages of paranoia and fear over 3%.
I hope the commentators are happy now.