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MindArk Buys Back Calypso Land Deeds

I guess 27 pages are too much for me at this hour...

Buyback from a fictional investor (maybe he/she/it was disclosed after 27 pages, cannot wait for the drama, reading page 3 atm), selling them at more than initial price (with same TT=0), boasting 25% / year better than RL so the big investor said: "what the heck, I want the 1.5% interest rate from bank in RL instead, or better I can lose 60% at the stock market in just 1 year".

My initial reaction was: ":laugh:" but it was too short...
 
Unvinsible said:
How are MA making cash on this? All they have done is help a large investors sell 20 % of his investment (CLDs that everyone knew about, and you aswell should have calculated in your markup predictions)
If he didn't get MA help, he could have still dumped them for 1150 ped each, heck he could dump all 25k for 1k too if he wants too. Wouldn't be MA fault.
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Because they most likely repaid this "investor" with ped, which has no impact on MA unless he hits the withdrawal button. However, being able to sell 5000 more deeds means that people may deposit funds in an attempt to buy them, which is where MA gets their money from.

So they got a lot of deposits from the original sale. The purchases also reduced the contingent liability because the deeds are pure markup. Payments to deed owners AND to this investor have been made in ped, which again, only impacts the business IF someone hits withdraw. Now they are again selling more deeds, getting more cash from deposits and reducing their contingent liability.

MA's goals recently have been to get the funding for Mindbank. They have made this clear that it is still something they are trying to do. However, in order to turn into a bank, they need the funding required to back customer deposits. To do that, they need more cash/assets AND they need to reduce the amount that us players hold in ped. It would appear to me that every move they have made over the last few years is geared toward accomplishing that goal.
 
DoubleWolf said:
Because they most likely repaid this "investor" with ped, which has no impact on MA unless he hits the withdrawal button.
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the assumptions made in this community never cease to amaze. let put a real number to this - its $500,000. the owner would have made about $312,000 over the last 6 mths (25%). 3m Ped goes a long, long way, they would be uber-uber. why on earth would this person want half a million $ in game when at this rate they'd have another 2.5m Ped in 6 months time? a more obvious assumption might be that when investing $2.5m they had an option to sell back tranches as a way to divest some of their investment (or even MA wanted the option to buy back).
 
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aridash said:
the assumptions made in this community never cease to amaze. let put a real number to this - its $500,000. the owner would have made about $315,000 over the last 6 mths (25%). why on earth would this person want to leave half a million $ in game when they could already be uber-uber (3m Ped goes a long, long way). a more obvious assumption might be that when investing $2.5m they had an option to sell back tranches as a way to divest some of their investment (or even MA wanted the option to buy back).
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Your assumptions never cease to amaze me either...

Your understanding of the business is still fundamentally flawed. You keep equating ped with real money, when in fact it is not. Paying players in ped DOES NOT factor into Mindark's top or bottom line. Period. Only if a player requests a withdrawal does it have an impact. But that request is not guaranteed to happen, and is also why ped is considered a CONTINGENT liability. I still don't know how this doesn't make sense to you, or why you refuse to acknowledge it...

Now you might be right in your assumption that it would be foolish for a player to leave that much ped in the game and not ask for an exchange, but I point to this as the motivation for MA to "buy" back the deeds from this player. MA's intention was to spread out the ped payouts to the entire player base with the idea that the payouts would be consumed in game and never asked to be withdrawn. With one player holding that many deeds, it is quite likely that they will be asking for an exchange, perhaps quite frequently. By limiting the amount of deeds this player owns, they are limiting the amount of ped that could (and likely would) be exchanged, which does have an effect on their future earnings.
 
DoubleWolf said:
Your assumptions never cease to amaze me either...

Your understanding of the business is still fundamentally flawed. You keep equating ped with real money, when in fact it is not.
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yep, i equate investing $2.5million to very real money, as im sure the owner of those CLD would. i dont see any evidence for one individual spending these quantities ingame, so one might summise they are routinely withdrawing, or the cash never went though the ineffiencies of deposit/withdrawal.

anyway, my comment wasn't on the mechanics or accounting practices involved, ignore the $ sign and put an extra 0 on the end - they've got 3,120,000 on their Ped card from 6mths and this is another 5,000,000 Ped. the point was i'm amazed anyone would assume this investor is keeping this in game and not withdrawing it.
 
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aridash said:
yep, i equate investing $2.5million to very real money, as im sure the owner of those CLD would. i dont see any evidence for one individual spending these quantities ingame, so one might summise they are routinely withdrawing, or the cash never went though the ineffiencies of deposit/withdrawal.
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It was $2.5 million when it was in the investors hands. When he gave it to MA it became their revenue, and the "investor" (and I use the term loosely...) no longer had any legal claim to any of it.
 
DoubleWolf said:
It was $2.5 million when it was in the investors hands. When he gave it to MA it became their revenue, and the "investor" (and I use the term loosely...) no longer had any legal claim to any of it.
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But the investor might have had a legal charge over some of MA's real assets as a condition of the investment, which amounts to the same thing.
Anyone who invests $2.5m is going to demand a very special contract, one where the liability in MA's accounts is real, not merely contingent.
[if that is the case, expect more buy backs and sales before December 31st]

Edited : that would explain why MA are doing this. The $2.5m must somehow be on MA's Balance Sheet as a real Liability. If MA can sell the same CLD to players, it moves to being a Contingent Liability.
 
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chevrons said:
But the investor might have had a legal charge over some of MA's real assets as a condition of the investment, which amounts to the same thing.
Anyone who invests $2.5m is going to demand a very special contract.
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That would make him an actual shareholder then, and he would have equity in the company. He might as well have just been given shares of MA instead of CLDs, because CLDs do not make you a shareholder. Would've been a safer investment, that's for sure.

But giving this "investor" shares of MA in exchange for how much he held in CLDs is a losing proposition for the company and its real shareholders, so there would be no reason for them to do this.

And in all honesty, I'm sure MA would rather you hold CLDs, that way the money you put in belongs to them and they don't owe you anything. Contrast that with being an actual shareholder where you would have a legal claim to the company's assets.
 
chevrons said:
A legal charge means he is what is called a 'Creditor'
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Then being a creditor he would be considered a liability.

In either case, it doesn't benefit MA at all, so I'm sure they wouldn't have done this.
 
RickEngland said:
Investors have the right to be be annoyed, why should we have to wait for prices to recover (maybe they wont),
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What the difference, is it 1k per CLD, or 1.15k, or 1.3k - if CLDs WORKS? Audit was done, every CLD-holder get paid, etc-etc.

What the difference, what MU have CLD, if you're here for ROI?

And you know, while ROI is healthy - I don't see problems in MU. At all.

RickEngland said:
is there going to be another 5000 sold in Feb-2013 another downgrade maybe?
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Yes, I am sure there will be. And SB in that time will be minimum 1.5k (lmao.jpg) Why?

Show must go on. While in MA is sitting that *censored* head, which producing such badass ideas - that game is invincible.
 
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DoubleWolf said:
Because they most likely repaid this "investor" with ped, which has no impact on MA unless he hits the withdrawal button. However, being able to sell 5000 more deeds means that people may deposit funds in an attempt to buy them, which is where MA gets their money from.
Click to expand...
Pretty sure he is withdrawing or getting paid directly and not using the peds for hunting ..

DoubleWolf said:
So they got a lot of deposits from the original sale. The purchases also reduced the contingent liability because the deeds are pure markup. Payments to deed owners AND to this investor have been made in ped, which again, only impacts the business IF someone hits withdraw. Now they are again selling more deeds, getting more cash from deposits and reducing their contingent liability.

MA's goals recently have been to get the funding for Mindbank. They have made this clear that it is still something they are trying to do. However, in order to turn into a bank, they need the funding required to back customer deposits. To do that, they need more cash/assets AND they need to reduce the amount that us players hold in ped. It would appear to me that every move they have made over the last few years is geared toward accomplishing that goal.
Click to expand...

And this is bad why?
 
Unvinsible said:
And this is bad why?
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Did I imply that was bad? It's certainly good for MA and I have always believed that Mindbank would be good for the players as well. It's a win-win in the end if they make it work.
 
any update on the time at which the deeds will be added, or did i miss that?
 
Samuel Robet said:
i was spamming refresh from 0000 - 0100 and nada
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Good thing you stopped after an hour then, there are still none on. I guess somewhere during swedish business hours then.
 
and its the global auction again ? just being on the wrong planet would s*** : P
 
Harmony. said:
any update on the time at which the deeds will be added, or did i miss that?
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Neh they are just clueless that communication is key. Nothing new lol.
 
made sure i was on for midnight wednessday and kept on looking in auction and nothing , went to diffrent auctioneers just incase and nothing :( . kept refreshing calypso and global auctions and nothing, then off to bed by 01:30 MA time . here we are @ 08:00 and nothing still .
 
hope the broker dont live in mexico , then we have to wait another 8 hours :eyecrazy:
 
Luckycharm said:
Neh they are just clueless that communication is key. Nothing new lol.
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Actually, they communicated quite allright. They said the CLD would become available Nov 1st. As far as I can tell, that time hasn't passed yet.

They never said they'd hit the auction at 0:00 sharp, that's just coming from people who are jumping to conclusions. I expect they didn't say anything about the time because they knew that if they'd miss it by a minute, people would start trolling about it. So instead, they promised something they knew they would be able to deliver.

Nothing wrong with that.
 
you are absolutly right Wollongong , but i have had 1 CLD shown up in Global auction then when i tried to view it for the purpose to buy it it just came up with an error ? and then dissapear. not sure if ppl have been able to purchase these or not/ or they have been purchased and i am too slow
 
main problem is they are manually put to auction , guess the broker got for a coffee break now , and yes , one is always to slow to buy one
 
Are you sure you saw in Global auction cos i don't see a single one :)
 
Where the hell are these deeds
 
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