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Non-Tech : Radica Games (RADA) -- Ignore unavailable to you. Want to Upgrade?


To: larry watson who wrote (2616)2/16/1998 8:48:00 PM
From: Jonathan Bird  Read Replies (2) | Respond to of 7111
 
A possibility to consider: If Has intended to take over the hand-held game market, it might have made more sense to acquire Radica, and compete against Tiger.

All things being equal it is always much faster and cheaper to buy a private company then it is buy a public one. The posters on this thread who demand 35 dollars a share illustrate why this is so. This might have something to do with it. Additionally, when you buy a company that is not living up to its potential the you get it at a discount. If you buy one that is, like Radica, then you pay a premium.

The market would have been theirs for the taking. Perhaps Has has other intentions.

You are right that Tiger is going a lot of different directions and electronic hand held games is only one of them. But if Hasbro is like me they view the electronic hand held game market as the most exciting growth segment in the toy industry. While Tiger may be only 13 percent of Hasbro revenue this year, with this kind of growth potential it should not surprise any one if it is over 50% 5 yrs from now.

There may have been other reasons for acquiring Tiger than as a weapon against Radica.

Like a weapon against Matell. They want to take this market segment to the big leagues IMO. That's what I would do. The players in the hand held game market don't simply compete against themselves. They compete for the attention of children(and some adults)against all manner of toys. The growth in this segment isn't because there are twice as many children as there were last year. And its not because people make twice as much disposable income as last year. Its because the games are twice as cool and there are going to be fewer GI Joes, barbies, and power rangers sold as a result.

Jon Bird