One of the telecommunication companies of Japan, SoftBank is investing many of its shares in the developers of the combat strategy game, Clash of Clans.
The way this game is tearing the charts to avail the number one position in the gaming list, SoftBank is all set to inflate its shares of ownership in Supercell.
SoftBank announced in the first week of June 2015 that it has expanded its shares to a direct 73.2% in Supercell. The sole reason of Clash of Clans being the most downloaded and extremely likable game amongst its players, the Japanese company has made this increment in the shares. The complete deal was not disclosed, except the share rates during the announcement. However, the company owners made it clear that there are no more external shareholders of Supercell anymore. The rest of the 26.8% of shares is divided amongst the employees and the management.
The Earlier Investment
SoftBank had already invested in Clash of Clans two decades back. The game that launched in the year 2012 had gained so much popularity among the game players that its shares sore to a tremendous height. At that time, it had taken over no less than 50.5% of the entire shares that were released in the market. These shares cost one and a half billion dollars to the company. However, as the company had understood that Supercell could make easy money through Clash of Clans, it was a worthy investment. The game is simple enough to understand and play. Clash of Clans trains people to combat the enemy troops by making castles, building empires and training the troops. With billions of people playing this game every day to make clans and attack the army, SoftBank could not see any signs of failure and hence invested; making Supercell a blue chip company for them.
The Money Matters
If SoftBank could invest so much in Supercell, what must be the profit rate of Supercell with this game? When the CEO was asked in one of the interviews about the income and earnings Clash of Clans is making, he reported that his company made five hundred and sixty nine million dollars in 2013 and earnings of five hundred and fifteen million Euros in the year 2014. Most of the revenue is generated through Clash of Clans of Supercell. However, the rest of the games, Boom Beach and Hay Day also support to bring name and fame to the company. SoftBank is not at all interested in knowing which game is making how much money unless Supercell remains a profitable company for them.
With the ever-increasing rise in playing online games or increase in the number of app store games, most of the people can be seen glued to their mobile screens or any electronic devices through which they enjoy playing. Though the competition amongst the games and the players of the game is increasing, there is much demand for companies to acquire shares of the game developing companies and make huge profit in no time.