Stillfront Group AB: Stillfront Acquires Majority Stake in Simutronics

[Methais]

JUNE 21, 2016

Stillfront Acquires Majority Stake in Simutronics
Stillfront Group AB (publ) today announces its acquisition of the majority of the shares in Simutronics Corp. Simutronics, based in St Louis, Missouri, was founded in 1987 by David Whatley, who is the CEO of the company. David Whatley is a highly respected industry veteran and acts as speaker regularly in different industry contexts such as GDC, iDEV360, Unite and many more.

Simutronics has developed and is operating the games GemStone IV and DragonRealms. Both of which are MUD-style text-based games with a very loyal player base. Further, Simutronics is a well renowned and profitable mobile games developer, having developed Tiny Heroes(TM), One Epic Knight(TM) and Lara Croft Relic Run(TM). Lara Croft Relic Run(TM) has been a great success with more than seventeen million downloads. With this acquisition Stillfront adds both a new Strategy games genre as well as mobile game capabilities to the Group.

Simutronics is currently developing its own IP in the mobile strategy game area, to be announced. Simutronics currently has 20 employees and reached over 2 MUSD in revenues during 2015. David Whatley will remain the CEO of Simutronics and continue to lead the talented team.

Jörgen Larsson, CEO, Stillfront Group, comments "Simutronics and Stillfront constitutes an excellent fit. We share the philosophy and cornerstones of Stillfront's PLEX strategy and Simutronics will strengthen Stillfront's position in a number of areas, for instance in the mobile space and Unity development. I am extremely pleased to have David Whatley and his entire team at Simutronics as a valuable strategic addition to the Stillfront family", Jörgen Larsson, CEO, Stillfront Group, comments.

David Whatley, CEO, Simutronics, comments "I am excited for Simutronics to be joining forces with Stillfront Group. We share a common vision and objectives, and I firmly believe this will be a great strategic advantage for both companies", David Whatley, CEO, Simutronics Corp., comments.

The Transaction in Detail
Stillfront acquires 52.65% of the outstanding shares of Simutronics. Simutronics will be consolidated in the financial reporting of Stillfront as of June 1, 2016. The consideration to be paid at closing in June 2016 will amount to in total USD 937,661 and be paid partly in cash and partly in Stillfront equity. The cash part will amount to USD 787,635 and the equity part to USD 150,026. Furthermore, an earn-out consideration consisting partly of cash and partly of equity will be paid based on the financial performance of Simutronics during 2017. The earn-out consideration shall not exceed USD 1,805,400. As of the closing in June 2016, approximately 19,000 Stillfront shares representing approximately 0.4 % of the total number of shares in Stillfront will be issued, constituting the equity part of the consideration. The subscription price will be determined based on the average price per Stillfront share on Nasdaq First North during the 30 days preceding the date of subscription for shares. The share issue will be resolved upon at closing by the board of directors of Stillfront in accordance with the authorization granted at the annual general meeting.

Closing is scheduled to take place on or before 30 June 2016.

Stillfront has furthermore agreed to establish an incentive program to the key management individuals in Simutronics. The incentive program will consist of 35,000 stock options and 7,500 restricted stock units which entitle to acquisition of the same amount of shares in Stillfront and will be granted upon resolution by the board of directors of Stillfront in connection with closing. The options and the units will be subject to a four-year vesting schedule. The exercise price of the options shall correspond to the fair market value of the Stillfront share at the grant date. The units shall entitle the holder to compensation for dividend payments on the underlying shares from the company.

The costs, including social security contributions, for the fulfilment of the program depend on which arrangements Stillfront will make to fulfil the options. If the aggregate fair market value of the shares exercisable under the stock options in any calendar year exceeds USD 100,000, social security contributions corresponding to 8% of the value of the benefit shall be paid. Fulfilment of the options through a new share issue is not expected to cause the company any material costs. A new share issue of 42,500 shares will, however, entail a dilution of approximately 0.84%. Costs for fulfilment of the options through for example repurchase and sale of Stillfront's own shares depends on inter alia the current price of the share at the time of the purchase. Costs for dividends in relation to the Restricted Stock Units depends on Stillfront's result and future capacity to pay dividends.

Stillfront has furthermore invested USD 500,000 in Simutronics to accelerate the development of its current mobile strategy games. The investment is structured as a loan on market terms.

For additional information, please contact:
Jörgen Larsson, CEO at Stillfront

Phone: +46 70 321 18 00

E-mail: jorgen@stillfront.com

Sten Wranne, CFO at Stillfront

Phone: +46 705 851258

E-mail: sten@stillfront.com

About Stillfront
Stillfront is an independent creator, publisher and distributor of digital games - with a vision to become one of Europe's leading indie game creators and publishers. Stillfront operates through four near-autonomous subsidiaries: Bytro Labs in Germany, Coldwood Interactive in Sweden, Power Challenge in the UK and Sweden, and Dorado Online Games in Malta. Stillfront's games are distributed globally. The main markets are Sweden, Germany, the United States and South America. For further information, please visit www.stillfront.com.

Selected games
Stillfront's portfolio includes games across multiple platforms. Unravel, developed by Coldwood in collaboration with Electronic Arts, won 20+ awards at E3 and gamescom and was released in February 2016. Supremacy 1914 and Call of War are high-immersion war strategy games developed by Bytro Labs. ManagerZone is a sports management strategy game launched in 2001.


http://www.nasdaq.com/press-release/stillfront-group-ab-stillfront-acquires-majority-stake-in-simutronics-20160621-00040#/ixzz4CEEuNuTQ

[SpiffyJr]

Wat.

[Gelston]

So Simu is worth about 2m.

[Velfi]

Wat.

Same.

[Allereli]

For that amount I'm surprised Martin Shkreli didn't buy it out years ago

[everan]

Now you know why they've been doing all these cash boost events, had to goose the EBITDA to set valuation.

Stillfront just had their IPO in December, so they have cash to burn. Growth through acquisition.

Does this make them a buy, sell or hold?

[Peppwyn]

Can't wait for Dragons of Elanthia Mobile Edition. It's what everyone's been waiting for!

[Methais]

They should convert GS into an Overwatch style FPS but with GS professions.

[Gelston]

They should convert GS into an Overwatch style FPS but with GS professions.

You mean, make it completely unoriginal and gay as fuck?

[Peppwyn]

I want the original Heroe's Journey from 2000 or whatever ... not the terrible looking everquest trash.

[Amerek]

Now it all makes sense.

[Gelston]

I want the original Heroe's Journey from 2000 or whatever ... not the terrible looking everquest trash.

Huh? HeroEngine you mean? That was developed for Hero's Journey. That was like 2010. SWTOR uses a heavily modified version of it.

[Androidpk]

Huh? HeroEngine you mean? That was developed for Hero's Journey. That was like 2010. SWTOR uses a heavily modified version of it.

The isometric HJ game.

[Peppwyn]

The isometric one was cool looking.

[Methais]

You mean, make it completely unoriginal and gay as fuck?

I'll have you know that Overwatch is heterosexual as fuck. Except for Zarya.

[Archigeek]

17 million downloads for mobile, plus GS plus Dragonrealms, with 20 employees, leads to revenue of only 2m in 2015? Way to monetize those 17m downloads. On the other hand, the ditching of their boat anchor games now makes sense. Guess we'll see where this leads.

[Tgo01]

I didn't know Simutronics was a publicly traded company, I thought they always fought against going public.

[Donquix]

17 million downloads for mobile, plus GS plus Dragonrealms, with 20 employees, leads to revenue of only 2m in 2015? Way to monetize those 17m downloads. On the other hand, the ditching of their boat anchor games now makes sense. Guess we'll see where this leads.

I've never heard of it. Based entirely on the name "relic run" and the fact that it's an existing triple-A property, I'm assuming they took <insert endless runner game here> and re-skinned it with lara croft. Likely contracted for that at a flat rate + a pittance for continuing support so likely get shit for any microtransactions. The only surprising thing is they didn't just pay a Chinese company for that.

[Astray]

17 million downloads for mobile, plus GS plus Dragonrealms, with 20 employees, leads to revenue of only 2m in 2015? Way to monetize those 17m downloads. On the other hand, the ditching of their boat anchor games now makes sense. Guess we'll see where this leads.

Right? Ads and some cash shops can fucking rake in the cash. I guess they didn't have shit for mobile games though. Which is saying a lot when you look at what's popular.

[Gelston]

I didn't know Simutronics was a publicly traded company, I thought they always fought against going public.

This doesn't mean they are publicly traded. Someone made an offer for a stake and Whatley took it. It is um... Privately Traded. :D

[Tgo01]

This doesn't mean they are publicly traded. Someone made an offer for a stake and Whatley took it. It is um... Privately Traded. :D

It's just odd how the article describes this other company as "acquiring" 52% of the outstanding shares of Simu. Like, who has shares in this company? I thought it was pretty much just David Whately up top and some other nameless person we never hear about. I guess they could be joint owners and one of them sold out or something.

[Taernath]

Wonder if that means more or less development for GS.

[Tgo01]

Wonder if that means more or less development for GS.

Probably more, but it will almost all be paid shit.

[Naelan]

It could mean a number of things. If the controlling interest is only after mobile development assets it may be that GS is sold off or shut down. They also may decide to look at it as a revenue stream if it is profitable enough and decide to keep it.

[Gelston]

It's just odd how the article describes this other company as "acquiring" 52% of the outstanding shares of Simu. Like, who has shares in this company? I thought it was pretty much just David Whately up top and some other nameless person we never hear about. I guess they could be joint owners and one of them sold out or something.

If you are a single owner of a company, you have 100% of shares. If you have an even partner, you both have 50%. If you and your partner both sell half of your shares to another person, they'll have 50%, and you and your partner will be at 25%. There is ALWAYS a % ownership someone has over a company.

[everan]

Wonder if that means more or less development for GS.

I think it will certainly result in development, but it's going to be different. Acquirer is a public company, so there will be rules. Ultimately, unless they're after something specific that is non-Gemstone related, they are going to need to drive numbers to the game, not just in-active monthly fees from a limited number of price insensitive folks.

[Astray]

Wonder if that means more or less development for GS.

Likely less. The loan specified specifically for Simu's mobile development areas.

[Warriorbird]

Nice job Whatley!

[Taernath]

Probably more, but it will almost all be paid shit.

I don't really consider automated slot machine quests to be development.

I'm kind of hoping these new guys see Simu's text-based games as being what keeps the lights on, and hire a coder or two.

[everan]

I don't really consider automated slot machine quests to be development.

I'm kind of hoping these new guys see Simu's text-based games as being what keeps the lights on, and hire a coder or two.

I didn't see the part about them focusing on the mobile platforms. Maybe this is a chance for one of those people who always wanted to buy Gem to make an offer. If they aren't interested in the text game, they may be willing to spin it off.

[Astray]

I don't really consider automated slot machine quests to be development.

I'm kind of hoping these new guys see Simu's text-based games as being what keeps the lights on, and hire a coder or two.

It appears that the new guys have more interest in Simu's mobile app department. Enough to toss a $500k loan at it. Still, I'd like to think that if they open Simu's books they'd see that they get some serious cash out of GS4. Enough to make someone highly interested in development for it.

[Luxelle]

Word on the street is that SillFront peeps *have* been playing both GS and DR.

Hope you all were nice to them and did not murderize them :)

As of this writing, there's nothing on the Simu Corporate site, nothing on the main GS page, and no reply has been made by anyone from Simu to Pup's first question about this news on the Forum, or the questions that follow it.

There's a press release only at the Stillfront web site.

We're having fun now, right?

[Allereli]

As of this writing, there's nothing on the Simu Corporate site, nothing on the main GS page, and no reply has been made by anyone from Simu to Pup's first question about this news on the Forum, or the questions that follow it.

Wyrom posted in the FB group that he found out yesterday.

[Naelan]

Still, I'd like to think that if they open Simu's books they'd see that they get some serious cash out of GS4. Enough to make someone highly interested in development for it.

I'm sure plenty of book crawling happened before they decided to toss $500k at Simu's mobile development department.

[Hazado]

They twittered at some peeps
https://twitter.com/GemStoneIV/status/745317903159824388

Not sure why you think Simu is going to get a news release together in a timely manner. I expect at least a few days before they comment officially.

[Astray]

I'm sure plenty of book crawling happened before they decided to toss $500k at Simu's mobile development department.

Have the mobile games from Simu really been that profitable? Last I heard they all sucked hard.

[Gelston]

Word on the street is that SillFront peeps *have* been playing both GS and DR.

Hope you all were nice to them and did not murderize them :)

As of this writing, there's nothing on the Simu Corporate site, nothing on the main GS page, and no reply has been made by anyone from Simu to Pup's first question about this news on the Forum, or the questions that follow it.

There's a press release only at the Stillfront web site.

We're having fun now, right?

Oh fuck. Someone who isn't me is one of them. GS is getting shut down!

[Fallen]

Very interesting.

[Androidpk]

Like a game of hot potatoes. Who's going to be left holding the 10x DBs when the plug is pulled!

[Taernath]

Have the mobile games from Simu really been that profitable? Last I heard they all sucked hard.

I'm sure they're making some decent bank off them. Their next entry is some kind of Hearthstone knockoff.

[Luxelle]

This morning, the official GemStone Twitter replied to players' concerns at:

https://twitter.com/GemStoneIV/status/745317903159824388


From Twitter:

"...fear not. GS/DR are critical parts of business. Full steam ahead!"

[Gelston]

This morning, the official GemStone Twitter replied to players' concerns at:

https://twitter.com/GemStoneIV/status/745317903159824388

Way to be second in this thread, Geez.

[Astray]

I love how the Twitter has a thing from last year. It's amazing.

[Donquix]

Side note i just realized: whenever i joked about "if i won the lottery i'd just send whatley like a million bucks and take over the sinking ship" i'm glad my valuation was basically right on target.

[Hazado]

So new forum for Stillfront Group announcement
http://forums.play.net/forums/Simutronics/Simutronics%20Discussions/Stillfront%20Group%20Announcement/view?beginning_post_id=1&ending_post_id=1&page=1

Post from David
http://forums.play.net/forums/Simutronics/Simutronics%20Discussions/Stillfront%20Group%20Announcement/view/1

Hey all,

I wanted to take a moment to talk about the Stillfront Group announcement that many of you noticed go out over the wire. Stillfront Group, a Stockhold-based game creator and publisher, has acquired controlling interest in Simutronics Corp. Yep, after about 30 years, I decided to stop going it alone and join forces.

Obviously this sort of change of control raises questions and concerns. But the good news is that they are easily answered because there isn't going to be any real change to what we are doing as regards GemStone IV and DragonRealms. I'm still the CEO, everybody is still in their same positions, all of our efforts and plans for these games remain unchanged. Our GM staff is still plugging away creating great new stuff, new events, and all you've come to expect.

So, in that sense, nothing has changed.

But in another sense it has, because joining forces with Stillfront Group gives us more stability and opportunity than going it alone. Other Stillfront Group studios have web-based products as well, and we'll work together to learn from each other about how to better reach more players and bring them on. It is this sort of synergy (though I loath that particular corp-speak work as much as the next guy) that is the real impetus for doing this deal.

And in a final sense, it is a huge deal for me. Because I am the classic "going alone" kind of guy, or have been for three decades at least. Or maybe I'm not, because although Simutronics Corp has always gone it alone, I certainly haven't. GemStone and DragonRealms are the product of countless individuals who have poured immense creativity and love into their continuous evolution from the simple shells I coded together so many years ago. So, in a sense, we are expanding our team. And we're going to continue to give these titles our focus and love for ... well... gosh... decades more I assume. After all, so long as people want to immerse themselves in these worlds, and GMs want to keep making new stuff, I really can't imagine there ever being a day when these world cease to exist. Few worlds have anything like the longevity you see with GS and DR, and I'm excited to see where we can take them next!

Anyway, here's a topic to ask questions and discuss. But, in short... fear not, all is good. Elanthia, in both it's forms, lives on!

-- David

[drauz]

It appears that the new guys have more interest in Simu's mobile app department. Enough to toss a $500k loan at it. Still, I'd like to think that if they open Simu's books they'd see that they get some serious cash out of GS4. Enough to make someone highly interested in development for it.

The question though is whether income is in decline or rising or staying the same for GS/DR.

[Astray]

The question though is whether income is in decline or rising or staying the same for GS/DR.

Hard to say without their books laid out. Still, 2 million isn't something to scoff at. I hugely doubt the bulk of that is from the App department though. That said, however, it's difficult to imagine the apps suck since they received half a million for that department specifically.

I'm hoping that the new investors see GS4 as an absolute positive and they allocate resources towards proper developers. Savants, RSN.

[Warriorbird]

Color guess on Whatley's new NSX?

http://cdn.gearpatrol.com/wp-content/uploads/2015/10/nsx-brief-gear-patrol-4.jpg

I'm voting coke white.

[SHAFT]

That's hot. I'd snort coke off the hood of that!

[drauz]

Hard to say without their books laid out. Still, 2 million isn't something to scoff at. I hugely doubt the bulk of that is from the App department though. That said, however, it's difficult to imagine the apps suck since they received half a million for that department specifically.

I'm hoping that the new investors see GS4 as an absolute positive and they allocate resources towards proper developers. Savants, RSN.

Its not bad at all for a small company like this. Assuming they are growing and not in decline, this would mean somewhere in the 200k profit annually. I could be way off though.

[Taernath]

I don't think the $2M is straight profit, some part of it goes to salaries, electricity bills, and hamster feed*.

*cocaine

[drauz]

I don't think the $2M is straight profit, some part of it goes to salaries, electricity bills, and hamster feed*.

*cocaine

I read it as 2m valuation of the company, assuming a company is growing and not in decline the valuation is around 10x the annual profit.

[Gelston]

I read it as 2m valuation of the company, assuming a company is growing and not in decline the valuation is around 10x the annual profit.

Yes, that is what it is. It is the assets and liabilities of the company. It can also include future potential cash flow and such too. It depends on who is doing the valuation.... Obviously Stillfront valued, or agreed with the value, of just shy of $2m USD.

[Astray]

Right, right. I misread it as straight profit. If 200k is what they make annually, 500k towards a single department is kind of wonky.

The investors really believe simu's new strategy app is looking amazing or... someone might be delusional?

[Taernath]

I read it as 2m valuation of the company, assuming a company is growing and not in decline the valuation is around 10x the annual profit.


Yes, that is what it is. It is the assets and liabilities of the company. It can also include future potential cash flow and such too. It depends on who is doing the valuation.... Obviously Stillfront valued, or agreed with the value, of just shy of $2m USD.

I don't believe revenue includes assets, but it's entirely possible I'm wrong. I took it to mean Simu is generating 2m not including expenses.

[Gelston]

Right, right. I misread it as straight profit. If 200k is what they make annually, 500k towards a single department is kind of wonky.

The investors really believe simu's new strategy app is looking amazing or... someone might be delusional?

They may also be looking at stability. 30 years in the tech/gaming sector isn't something to laugh at.


I don't believe revenue includes assets, but it's entirely possible I'm wrong. I took it to mean Simu is generating 2m not including expenses.

I didn't say revenue included assets. I said valuation did.

[drauz]

Right, right. I misread it as straight profit. If 200k is what they make annually, 500k towards a single department is kind of wonky.

The investors really believe simu's new strategy app is looking amazing or... someone might be delusional?

I wonder how that revenue is split, thats what I would be interested to find out. Who really makes the money for Simu. Which IP is their bottom bitch.

[drauz]

I don't believe revenue includes assets, but it's entirely possible I'm wrong. I took it to mean Simu is generating 2m not including expenses.

If you sell half your company for half of what it makes annually then.... you would be crazy. Or just hate money.

[Gelston]

I wonder how that revenue is split, thats what I would be interested to find out. Who really makes the money for Simu. Which IP is their bottom bitch.

That is an interesting question. They claim what? 17 million downloads? Even at .50 cents a download that is 9.5m dollars. I wonder where the hell that went? I never tried any of their games, so I have no idea what their monetary policy on them was. Perhaps they immediately divested the money from the company as it was made? Who knows.

But perhaps that is what this new company is interested in.... If their new game get even half the downloads and they charge 2 bucks for it, they are more than making their investment back.

[Taernath]

I didn't say revenue included assets. I said valuation did.

No one is even talking about valuation. They literally said "Simutronics ... reached over 2 MUSD in revenues during 2015." That is what Astray and I are talking about.

[Astray]

From what I heard and read, the apps Simu put out are fucking trashy cash grabs. They also vanished from the front page when cuts were being made, which means that the product was likely not profitable.

GS4 has got to be what's maintaining them.

[drauz]

No one is even talking about valuation. They literally said "Simutronics ... reached over 2 MUSD in revenues during 2015." That is what Astray and I are talking about.

Yeah I guess I read that wrong. If that is worded correctly then these people got a fucking steal. Buying a controlling stake in a company for half its annual profits is insane!

[drauz]

That is an interesting question. They claim what? 17 million downloads? Even at .50 cents a download that is 9.5m dollars. I wonder where the hell that went? I never tried any of their games, so I have no idea what their monetary policy on them was. Perhaps they immediately divested the money from the company as it was made? Who knows.

But perhaps that is what this new company is interested in.... If their new game get even half the downloads and they charge 2 bucks for it, they are more than making their investment back.

I played the epic knight, its a running game that offered no incentive to buy anything. While I love that from player perspective, its bad from a monetary standpoint. Alsp the game was super repetitive and lost its fun factor really quick.

[everan]

Yeah I guess I read that wrong. If that is worded correctly then these people got a fucking steal. Buying a controlling stake in a company for half its annual profits is insane!

No, it's not half their annual profits. The valuation is basically $1.8m, they're paying just under a million for 52.65%. Simus annual sales are $2m, who knows what they're profit is, but $350k or more wouldn't be surprising. If this is done at a 12 multiple, which seems high, it would infer an annual profit before taxes and stuff of around $150k. A normal company of this size could have a multiple in the 4 or 5 range, but tech companies sometimes get crazy multiples, especially if they have some sort of unique code.

And the loan is probably on Simu's books, they say they are investing $500k, but if it's a loan, that really isn't an investment, it would come out of profit eventually and be paid back. Loans are cheaper than equity.

[zennsunni]

If GS made anything less than half a million a year in profit I'd be shocked. I wouldn't even blink if it made 1 million+.

[Jarvan]

If GS made anything less than half a million a year in profit I'd be shocked. I wouldn't even blink if it made 1 million+.

GS doesnt make half a mill, MAYBE GS+DR, but not GS on it's own.

1000 Premium subs would 480k a year. No way is there 1000 Premium subs in GS. Even adding is say.. 30k per event, I wouldn't say they make close to 500k profit in a year.

[SHAFT]

It could mean a number of things. If the controlling interest is only after mobile development assets it may be that GS is sold off or shut down. They also may decide to look at it as a revenue stream if it is profitable enough and decide to keep it.

You have to think GS and DR are profitable. You also can't assume because it's profitable it will survive.

Glad I don't have a lot of assets in GS these days.

[Donquix]

You have to think GS and DR are profitable. You also can't assume because it's profitable it will survive.

Glad I don't have a lot of assets in GS these days.

It would be foolish to shut them down. Stop development (read as: most of the last 15 years) sure, but not shut down. It's free money. The variable cost is next to nothing and it generates tens of thousands a month. Especially if hosting, bandwidth, server / billing system maintenance, etc. was all rolled up into a preexisting business already doing all those things. Plus it's not like development costs anything, lolvolunteers. The only thing that makes that kind of questionable is the stupid GSL technical debt.

[Luxelle]

Even adding is say.. 30k per event

I totally added up the box office takes on GS and DR last year for the big pay Festivals in October and they came out really close to one another. I realize there might have been purchases and refunds done directly on the phone with customer service, but the box office figures should be close:

Total (unofficial) GemStone EG Box Office: $24,595
Total (unofficial) DragonRealms HE Box Office: $24,525

[everan]

If GS made anything less than half a million a year in profit I'd be shocked. I wouldn't even blink if it made 1 million+.

It's possible it made half a million, but it seems unlikely the owners would have sold half of it for $900k if it did. A multiple of 4 seems low, but the whole dynamic is interesting since it appears the buying company only has $7m or so in sales itself. They're listed on the Nordic Nasdaq, so their financials are public enough. The market cap of the company is amazingly high though considering they make an accounting loss, but seem to generate cash. They don't appear to have much debt, taxes must be high over there.

[Gnomad]

Uh, you guys also know that Whatley was a successful solo iOS developer, right?

https://www.engadget.com/2010/03/11/gdc-2010-the-secret-to-app-store-success/

[zennsunni]

Has anyone actually met Whatley? Is he as douchey as he sounds, or is it just because he's talking at a tech conference, and acting douchey is what tech culture is all about?

[Methais]

Uh, you guys also know that Whatley was a successful solo iOS developer, right?

https://www.engadget.com/2010/03/11/gdc-2010-the-secret-to-app-store-success/


He's got quite a background in the trenches of coding and game development, having designed and run online mulitplayer games for over a decade with his "day job" at a company called Simutronics,

They were only off by at least 11 years at the time the article was written.

[Stolis]

Has anyone actually met Whatley? Is he as douchey as he sounds, or is it just because he's talking at a tech conference, and acting douchey is what tech culture is all about?

From that article: "Finally, he showed a picture of himself working on a MacBook from a beach in Bali, and said that he'd been extremely happy with the success he'd found in the App Store"

That's pretty douchey, IMO.

[Gnomad]

I dunno the dude, but I don't think that's douchey at all.

It's a conference talk about how to succeed in the App Store after he made a quarter mil on a mostly solo project. That's what the people there want. You have two pictures to end that talk: a picture of you back at the grindstone or a picture of you enjoying your success. He chose both.

[Methais]

It appears that the new guys have more interest in Simu's mobile app department. Enough to toss a $500k loan at it. Still, I'd like to think that if they open Simu's books they'd see that they get some serious cash out of GS4. Enough to make someone highly interested in development for it.

I just want to be a fly on the wall when they find out that almost all of GS's staff are making 3rd world sweatshop wages at best and that Dave basically has an army of people working for him for free.

[Naelan]

I just want to be a fly on the wall when they find out that almost all of GS's staff are making 3rd world sweatshop wages at best and that Dave basically has an army of people working for him for free.

That actually speaks volumes about the quality of the product. If people love it so much that they will devote working hours to it for nothing beyond the love of the game, its pretty damned impressive. If they are smart they will see that there is untapped potential in these platforms.

[Taernath]

I just want to be a fly on the wall when they find out that almost all of GS's staff are making 3rd world sweatshop wages at best and that Dave basically has an army of people working for him for free.

http://i.imgur.com/vKeUhQl.jpg

[Methais]

They may also be looking at stability. 30 years in the tech/gaming sector isn't something to laugh at.

Hahahahahahahahahahaha

WHAT NOW MOTHA FACKU!?!?

[Methais]

http://i.imgur.com/vKeUhQl.jpg

10/10

[Methais]

I don't get why people think they're gonna pull the plug on GS/DR.

I don't know what DR pulls in, but GS rakes in shitloads of money almost for free with apparently super low maintenance and has a super retarded player base that will throw money at them for pretty much no reason.

On an unrelated note, selling Methais and everything on the account MB $1000.

just kidding

[drauz]

I don't get why people think they're gonna pull the plug on GS/DR.

I don't know what DR pulls in, but GS rakes in shitloads of money almost for free with apparently super low maintenance and has a super retarded player base that will throw money at them for pretty much no reason.

On an unrelated note, selling Methais and everything on the account MB $1000.

just kidding

give you tree fiddy

[kookiegod]

It's just odd how the article describes this other company as "acquiring" 52% of the outstanding shares of Simu. Like, who has shares in this company? I thought it was pretty much just David Whately up top and some other nameless person we never hear about. I guess they could be joint owners and one of them sold out or something.

I would assume David Whatley, Meg and Tom Zelenski and Elonka Dunin. Meg and Tom helped when David started out and Elonka has been there since day 1 (and by far one of the most brilliant people I am privileged to know).

Nothing secret as it was said a ton at many cons over the years.


~Paul

[Gelston]

I would assume David Whatley, Meg and Tom Zelenski and Elonka Dunin. Meg and Tom helped when David started out and Elonka has been there since day 1 (and by far one of the most brilliant people I am privileged to know).

Nothing secret as it was said a ton at many cons over the years.


~Paul

I don't think Elonka was an owner... I talked to Tom Zelenski at a SimuCon at length once, he owned something in the company but I don't remember or didn't ask how much.

[Luftstreitkräfte]

Probably more, but it will almost all be paid shit.

Instead of milking old Bessie I'd like to see them breed some more cows. The question is - can they genetically engineer a hamster capable of handling the server loads. It is 2016, so we'll see.

I think GS has a lot of useful qualities outside of the pleasure gaming realm. Teaching reading and coding come to mind.

[Gelston]

Instead of milking old Bessie I'd like to see them breed some more cows. The question is - can they genetically engineer a hamster capable of handling the server loads. It is 2016, so we'll see.

I think GS has a lot of useful qualities outside of the pleasure gaming realm. Teaching reading and coding come to mind.

OMG I was hoping you fell into a wood chipper.

[Whirlin]

I just heard back from Jorgen at Stillfront Group.

They have no current plans for Gemstone/DR, and they do not meddle in the affairs of acquisition companies... Their focus with Simutronics was their mobile development and accelerating that development effort. When/if they do decide to focus on GS/DR, they seem to just invest additional capital for development in hopes of accelerating the realized revenue streams.

Because I figured I may as well just reach out to the CEO of Stillfront group and ask him directly, rather than speculate for 9 pages.

[Viekn]

I figured I may as well just reach out to the CEO of Stillfront group and ask him directly, rather than speculate for 9 pages.

Nice job. Whirlin taking charge.

[Warriorbird]

I just heard back from Jorgen at Stillfront Group.

They have no current plans for Gemstone/DR, and they do not meddle in the affairs of acquisition companies... Their focus with Simutronics was their mobile development and accelerating that development effort. When/if they do decide to focus on GS/DR, they seem to just invest additional capital for development in hopes of accelerating the realized revenue streams.

Because I figured I may as well just reach out to the CEO of Stillfront group and ask him directly, rather than speculate for 9 pages.

Good effort. Also nice that they're the sort of company you can just talk to.

[drauz]

I just heard back from Jorgen at Stillfront Group.

They have no current plans for Gemstone/DR, and they do not meddle in the affairs of acquisition companies... Their focus with Simutronics was their mobile development and accelerating that development effort. When/if they do decide to focus on GS/DR, they seem to just invest additional capital for development in hopes of accelerating the realized revenue streams.

Because I figured I may as well just reach out to the CEO of Stillfront group and ask him directly, rather than speculate for 9 pages.

http://i.imgur.com/46CTYYF.gif

[Allereli]

I just heard back from Jorgen at Stillfront Group.

They have no current plans for Gemstone/DR, and they do not meddle in the affairs of acquisition companies... Their focus with Simutronics was their mobile development and accelerating that development effort. When/if they do decide to focus on GS/DR, they seem to just invest additional capital for development in hopes of accelerating the realized revenue streams.

Because I figured I may as well just reach out to the CEO of Stillfront group and ask him directly, rather than speculate for 9 pages.

but I want them to meddle

[droit]

Nice work Whirlin. It really seems like the effect of this acquisition is going to be neutral at worst, slightly positive at best.

[Gelston]

I just heard back from Jorgen at Stillfront Group.

They have no current plans for Gemstone/DR, and they do not meddle in the affairs of acquisition companies... Their focus with Simutronics was their mobile development and accelerating that development effort. When/if they do decide to focus on GS/DR, they seem to just invest additional capital for development in hopes of accelerating the realized revenue streams.

Because I figured I may as well just reach out to the CEO of Stillfront group and ask him directly, rather than speculate for 9 pages.

Wait, people were thinking they cared about the MUD part?

[Viekn]

Wait, people were thinking they cared about the MUD part?

I don't think we care that they don't care. It's only if they see the MUD part as a drain on profit is where it becomes an issue.

[SHAFT]

I just heard back from Jorgen at Stillfront Group.

They have no current plans for Gemstone/DR, and they do not meddle in the affairs of acquisition companies... Their focus with Simutronics was their mobile development and accelerating that development effort. When/if they do decide to focus on GS/DR, they seem to just invest additional capital for development in hopes of accelerating the realized revenue streams.

Because I figured I may as well just reach out to the CEO of Stillfront group and ask him directly, rather than speculate for 9 pages.

You're a good dude. +1 Internet points!

[Gelston]

I don't think we care that they don't care. It's only if they see the MUD part as a drain on profit is where it becomes an issue.

Hahaha, mostly free labor, low costs, steady income... Sure, MO and AOH were drains because they had about 10 subs between them... And those closed. Also makes me wonder behind the true nature of Eric leaving Simu. I highly doubt they'd ever close down the MUDs though. Players may bitch about them, complain about things, but they are still making good money for very little effort by corporate.

[Enuch]

Now I am hopefully this stays par for the course, but I am being skeptical because it's business.

Of course the current business is going to say don't worry and keep spending money and of course the acquiring business is going to say don't worry and keep spending money but that doesn't mean that at a seconds notice when everything is finalized play.net no longer exists. I very much doubt that would happen but it's not something that would stun me.

When a prior company I worked for was waiting on a recompete they said don't worry we got this in the bag keep slaving away and for two months we did, until we got shit canned.

Now these are different avenues to be sure, but nothing is guaranteed. So while the memo from still group is reassuring I still am truly waiting for the shoe to drop because my pesimistic self feels like their is a shoe dying to drop (insert hilarious gif of a cat in a shoe falling and exploding to the fat kid dancing to the peanut butter jelly time song)

[Luftstreitkräfte]

OMG I was hoping you fell into a wood chipper.

It's funny you mention wood chipper because those exact words came to mind the last time your mom gave me a toothy blow job.

[Gelston]

It's funny you mention wood chipper because those exact words came to mind the last time your mom gave me a toothy blow job.

I'm surprised she could find it inside your vagina.

[Luftstreitkräfte]

I'm surprised she could find it inside your vagina.

The clitoris is slightly above the vaginal opening, often veiled by the soft folds of the outer labia. ..Though none of us really expected you to know your way around a vagina.

[Gelston]

The clitoris is slightly above the vaginal opening, often veiled by the soft folds of the outer labia. ..Though none of us really expected you to know your way around a vagina.

Woosh.

[kookiegod]

I don't think Elonka was an owner... I talked to Tom Zelenski at a SimuCon at length once, he owned something in the company but I don't remember or didn't ask how much.

Yap, I never asked either, wasn't any of my business. :)

Tom is wild guy with hundreds of stories, mostly amazing.

I stand by Elonka being one of the most wonderful people ever created. :)

~Paul

[Luxelle]

I stand by Elonka being one of the most wonderful people ever created. :)

Wonderful and amazing!

[Back]

OMG I was hoping you fell into a wood chipper.


It's funny you mention wood chipper because those exact words came to mind the last time your mom gave me a toothy blow job.


I'm surprised she could find it inside your vagina.


The clitoris is slightly above the vaginal opening, often veiled by the soft folds of the outer labia. ..Though none of us really expected you to know your way around a vagina.

http://thisdayintechhistory.com/wp-content/uploads/2012/10/mortal_kombat_finish_him.png

[everan]

Hahaha, mostly free labor, low costs, steady income... Sure, MO and AOH were drains because they had about 10 subs between them... And those closed. Also makes me wonder behind the true nature of Eric leaving Simu. I highly doubt they'd ever close down the MUDs though. Players may bitch about them, complain about things, but they are still making good money for very little effort by corporate.

I figure they made 10 years worth of profit on AOH from the sponsor, the subscriptions were probably irrelevant.

[Archigeek]

I don't think Elonka was an owner... I talked to Tom Zelenski at a SimuCon at length once, he owned something in the company but I don't remember or didn't ask how much.

Elonka was, (and still is) definitely an owner.

[Gelston]

I figure they made 10 years worth of profit on AOH from the sponsor, the subscriptions were probably irrelevant.

They probably paid for the rights to Herc and Xena. It changed to just AoH a long time back though.


Elonka was, (and still is) definitely an owner.

Are you an Elonka buddy or something pal?

[Androidpk]

Are you an Elonka buddy or something pal?

She used to have a link on her webpage that gave you a free GS trial, before GS was f2p.

/random

[Gelston]

Yeah, nothing in here ever mentions being a part owner, just working for it since a Con in 1990...

http://www.elonka.com/autobiography.html

[Warriorbird]

Elonka was, (and still is) definitely an owner.

Don't ever claim actual knowledge of anything! People will whine!

[Taernath]

She was a general manager at Simu, plus other titles for their various games. She wasn't an owner.

[Gelston]

Don't ever claim actual knowledge of anything! People will whine!

I don't know man, if he has back ground knowledge cool. It just seems like something she'd mention in her biography. She never does.

And I totally forgot that simu set up a "Crisis Center" for 9/11.

[Taernath]

And I totally forgot that simu set up a "Crisis Center" for 9/11.

Yeah, that thing was pretty crazy
http://www.play.net/feature/crisis/bloodwrath.asp

http://elonka.com/mirrors/CFT/coverstory.html

The success of Simutronics is due in no small part to the rabidity of its fan base. It’s not uncommon for players to spend eight hours online in a given day — the amount of time most of us devote to a full-time job. During "quests" that cost extra money, players go on 20-hour-a-day online binges. Although it’s not the norm, wives have called Simutronics to beg the company to suspend their husbands’ accounts. Neil Harris, an executive vice-president at Simutronics, is unapologetic.

"Well, you know, they could be smoking crack," he says. "We’re certainly offering something a whole lot healthier."

lol

[Gelston]

Yeah, that thing was pretty crazy
http://www.play.net/feature/crisis/bloodwrath.asp

http://elonka.com/mirrors/CFT/coverstory.html


lol

http://www.relatably.com/m/img/why-not-both-meme-gif/82733-why-not-both-meme-5LvD.jpeg

[everan]

They probably paid for the rights to Herc and Xena. It changed to just AoH a long time back though.

Oops, my bad, I was thinking of Herc and Xena, when I said AOH. I actually really liked that game, there just weren't enough people over there for me to stay.

[Gelston]

Oops, my bad, I was thinking of Herc and Xena, when I said AOH. I actually really liked that game, there just weren't enough people over there for me to stay.

AoH was nice, it had a very small, but loyal community. You could tell that the game was a bit dated last I played though, as odd as that sounds. The systems were reminiscent of MUDs in the 90s. It just came at a bad time. There was room for GS and DR and they kept populations and evolved over time, AoH was just that third wheel... Population dwindled, less dev was put into it, until finally it just went away.

[Gelston]

Meh, white people are just as racist as black people. White people just watch what they say and do a little bit more.

[drauz]

Meh, white people are just as racist as black people. White people just watch what they say and do a little bit more.

wrong thread?

[Gelston]

wrong thread?

No. It is right where I wanted it and I refuse to admit making a mistake.

[drauz]

No. It is right where I wanted it and I refuse to admit making a mistake.

https://media.giphy.com/media/11BAxHG7paxJcI/giphy.gif

[Luftstreitkräfte]

http://thisdayintechhistory.com/wp-content/uploads/2012/10/mortal_kombat_finish_him.png

Right! every time I own him he always falls back on the "waah waah IW sucks" type deal but in reality he got creamed muaha. <3u Back

[Gelston]

Right! every time I own him he always falls back on the "waah waah IW sucks" type deal but in reality he got creamed muaha. <3u Back

Uh? What? I called you a giant dickless pussy and you responded with anatomy of a vagina. The whole thing was obviously above your level of understanding though.

Good thing you and back can get together and have a retard convention though.

[Luftstreitkräfte]

Uh? What? I called you a giant dickless pussy and you responded with anatomy of a vagina. The whole thing was obviously above your level of understanding though.

Good thing you and back can get together and have a retard convention though.

When you get really defensive I know I've cinched the victory.

[Gelston]

When you get really defensive I know I've cinched the victory.

Because it is possible to "win" childish internet shit talking. You must have a great life.

[Luftstreitkräfte]

Because it is possible to "win" childish internet shit talking. You must have a great life.

Try harder.

[Kalishar]

Try harder.

Part of me wants to comment on you kids going back and forth, but a bigger part of me just wants you to die, IW.

[Luftstreitkräfte]

Part of me wants to comment on you kids going back and forth, but a bigger part of me just wants you to die, IW.

Though grotesque, I guess necrophilia would put an otherwise disposable corpse to good use. I'll have my wife contact you immediately in the event of my untimely death.

[Methais]

When you get really defensive I know I've cinched the victory.

Aren't you supposed to be restricted to the merchant folder because of your past douchebaggery?

[Warriorbird]

Aren't you supposed to be restricted to the merchant folder because of your past douchebaggery?

I thought so...

[Luftstreitkräfte]

Aren't you supposed to be restricted to the merchant folder because of your past douchebaggery?

No.

[Gelston]

I thought so...

Anticor isn't exactly around to do anything about it.

[Luftstreitkräfte]

Anticor isn't exactly around to do anything about it.

You're like the guy who cries palming or foul whenever they get owned in 5 on 5 basketball. I'm enjoying just as much court time as anyone else. I was fully unbanned years ago. Go ice your ankle and quit trying to make up rules.

[Gelston]

You're like the guy who cries palming or foul whenever they get owned in 5 on 5 basketball. I'm enjoying just as much court time as anyone else. I was fully unbanned years ago. Go ice your ankle and quit trying to make up rules.

I don't play basketball because I'm not black.

[Methais]

I don't play basketball because I'm not black.

Homophobe.