Company or individual bought out or onluy company?

04-30-2012, 06:49 AM
#1
Company or individual bought out or onluy company?

So, Draw It was sold for all that money.
A billion dollars.
However, that was a company.


So this thread question is that if an individual gains millions of players and makes good ad revenue, then, will the BIG compaanies like Xynga start to look at a buyout for the individual person?
OR is it best to register and set up a company?
04-30-2012, 07:00 AM
#2
you can't be big and have a millions player by behing individual.
In most country you have a max earn amount as an individual, or it's better for taxes to have a company.
You also can't hire someone as an idividual (there is some small exception in my country). And if you are big, it's better to have at least some people in house.

You can start as an individual, and if you are successful you can transfert everything on a company (Apple allow that).

But don't spend time asking you what you need to do in case you are successful.
Be successfull first and ask yourself these questions after.

04-30-2012, 07:04 AM
#3
Quote:
Originally Posted by pinkandpurple View Post
So this thread question is that if an individual gains millions of players and makes good ad revenue, then, will the BIG compaanies like Xynga start to look at a buyout for the individual person?
OR is it best to register and set up a company?
It's the IP (or idea) they are paying for, it doesn't matter if you are individual or a company.

But in either case, if you think you have an idea worth of millions you'd better protect it first (trade mark, patent, etc.) or they might just copy your IP instead of buying out...

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04-30-2012, 07:09 AM
#4
Joined: Dec 2009
Location: Berlin, Germany
Posts: 1,657
Quote:
Originally Posted by PixelEnvision View Post
It's the IP (or idea) they are paying for, it doesn't matter if you are individual or a company.

But in either case, if you think you have an idea worth of millions you'd better protect it first (trade mark, patent, etc.) or they might just copy your IP instead of buying out...
lol..

yeah.. an trademark stops anyone to make clones of an successful game
04-30-2012, 07:17 AM
#5
Quote:
Originally Posted by mr.Ugly View Post
lol..

yeah.. an trademark stops anyone to make clones of an successful game
It won't, but at least it'll provide you a standing ground if you decide to defend yourself... Than again, if you have enough resources to be able to do that... Plus, I'm talking about the "million dollar idea", not about the next angry birds clone.

Pixel Envision - Creating fun apps for iOS & Android

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05-01-2012, 04:16 AM
#6
Quote:
Originally Posted by PixelEnvision View Post
It won't, but at least it'll provide you a standing ground if you decide to defend yourself... Than again, if you have enough resources to be able to do that... Plus, I'm talking about the "million dollar idea", not about the next angry birds clone.
Good thing is that I DO have a trademark
05-01-2012, 04:54 AM
#7
Joined: Dec 2009
Location: Berlin, Germany
Posts: 1,657
Quote:
Originally Posted by PixelEnvision View Post
It won't, but at least it'll provide you a standing ground if you decide to defend yourself... Than again, if you have enough resources to be able to do that... Plus, I'm talking about the "million dollar idea", not about the next angry birds clone.

a trademark provides you with exactly that a trademark, nothing more nothing less..

it does not stop not does it give you and "standing ground" to defend against clones..

i think the nimblebit tiny tower situation showed that clearly..

an idea is worth nothing.. its the implementation into a product that makes it worth something...

if and your competition creates something better from your basic concept there is nothing you can do (angry birds <-> crush the castle)

you dropped the ball, they picked it up.. so do your best.. and if it does not rake in millions then ... then well.. nothing..

a trademarks protects your "title".. angry birds.. flock the hog.. whatever.. it does not protect your idea.. if its even your own to begin with..
05-01-2012, 06:04 AM
#8
I believe in the case of Draw Something, it was the entire company that was purchased. They had something like 40 employees, and many games under their belt. I can't tell you what happened with the rights to all their other games, but I do know that extra money went into retaining OMGPOP's employees.

I think in the app business, IP has practically no value. In fact, Zynga "steals" ideas routinely. It's very easy to copy enough of a game's concept but add your own little odds and ends and thus avoid any legal repercussions. OMGPOP was bought because it was a functioning unit capable of building a successful franchise, not because they had a wonderful idea that Zynga couldn't simply clone.

You might want to consider what being bought out really means, as well...
http://www.forbes.com/sites/insertco...zyngas-buyout/ Enjoy the read.
05-01-2012, 07:37 AM
#9
If you buy an entire company, you get all its assets generally. So Zynga got all of OMGPOP's games & intellectual property and kept their employees (except that one guy). The problem Zynga faced is that they could try to clone Draw Anything, but that takes time and with even an identical product, that's no guarantee of success. There's something to be said about first mover advantage here. OMGPOP also kept pace with the astounding growth in Draw Something since they've been doing the multiplayer drawing game for some time now on the web. Also, I think Zynga didn't want another competitor to get Draw Something, so they went whole hog and bought them out.

As others have said, don't worry about your corporate structure. Just make the (hugely) successful game, and the rest will follow. Even if Zynga didn't buy them out, OMGPOP were raking in over $100,000 a day which pretty much solves all their financial problems. Getting bought out was just the icing on the cake.

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05-09-2012, 12:09 PM
#10
A Salary

What do programmers expect for annual salary and artists and marketers?