Tencent own preference stock. They could sell their stock, which could potentially harm the company, but they hold no voting rights and carry no decision making power.
I am not a fan of China, nor Tencent, but spewing bile without understanding the context does NOT help this discourse.
Can’t see how it would harm the company. Stocks and shares are just a way to raise money in a company. I’ll sell you x% for $yk and own that amount now.
Even with normal shares 30% is a minority stake especially if a single entity owns the other 70% (ie. You can express your opinion but I outvote you every time). Unless Larian are planning to raise additional funds by selling equity and need the stock price to remain high for that reason, Tencent are free to sell their portion without any impact to Larian. (Heck a drop might even let Larian buy itself back)
They’re not publicly traded, and the only shares are the ones that Tencent owns. The shares are worth whatever someone buys them for. The price doesn’t fluctuate because there’s no market with which they are traded on
Shareholders have a right to sell their shares. If there is no other buyer, then the company will have to pay them for it. They may not have enough liquid capital to pay off 30%. Other assets might have to be sold off, which may make it difficult to operate.
Well, penny stocks exist. It’s possible that Tencent suddenly liquidating their 30% share could bottom out the share value temporarily. If the market decided that Tencent liquidating their holdings was a sign that the company was going under, that should drive the price down, correct?
Did you not read the article?
Tencent own preference stock. They could sell their stock, which could potentially harm the company, but they hold no voting rights and carry no decision making power.
I am not a fan of China, nor Tencent, but spewing bile without understanding the context does NOT help this discourse.
Can’t see how it would harm the company. Stocks and shares are just a way to raise money in a company. I’ll sell you x% for $yk and own that amount now.
Even with normal shares 30% is a minority stake especially if a single entity owns the other 70% (ie. You can express your opinion but I outvote you every time). Unless Larian are planning to raise additional funds by selling equity and need the stock price to remain high for that reason, Tencent are free to sell their portion without any impact to Larian. (Heck a drop might even let Larian buy itself back)
If Tencent sell its shares, it would make the share price plummet, which will make it harder for the studio to get money by selling new shares.
They’re not publicly traded, and the only shares are the ones that Tencent owns. The shares are worth whatever someone buys them for. The price doesn’t fluctuate because there’s no market with which they are traded on
Shareholders have a right to sell their shares. If there is no other buyer, then the company will have to pay them for it. They may not have enough liquid capital to pay off 30%. Other assets might have to be sold off, which may make it difficult to operate.
Could they even sell if nobody is buying?
It would be bought. That’s how stocks work. If there is a promising company, there will be interested buyers.
Well, penny stocks exist. It’s possible that Tencent suddenly liquidating their 30% share could bottom out the share value temporarily. If the market decided that Tencent liquidating their holdings was a sign that the company was going under, that should drive the price down, correct?
if the company isn’t publicly traded they can’t always sell even if they want to
Is your head full of mush?
Excuse me?
Clearly yours is because that’s not a normal response to someone asking a reasonable question.
How can you sell something if no-one is buying?