To: Sigmund who wrote (6600 ) 7/2/1998 11:56:00 PM From: vc21 Respond to of 14266
Sigmund, Regarding the kneejerk, I definitely understand. If this acquisition is undertaken though, it may qualify for both of your acquired up/acquiror up possibilities. I don't see THQ paying more than $ 5 which is a cheap price considering they have about $2 per share cash. I also think that this acquisition would provide a lot of synergy. This company had 100 million in revenues the year before last. This surely is one way Brian can be on the path to the 250 million he is looking for in 12 - 24 months. However, all is rosy. If accomplished, THQ will be biting off a lot. MPRS last publically announced a headcount of 443. That's a tremendous increase over the 100 or so currently working at THQ. Managing this type of growth, (considering the atmosphere at MPRS), would be difficult. People are assuming Brian is looking at MPRS to port. I think quite the opposite. MPRS would position THQ quite nicely in the PC arena. This would be further helped by the recent GameFX acquisition. I'm not the biggest fan of PC, (see Activision), but I think Brian is smelling something that I see as well. The transition from next-gen to next-next gen is right around the corner. Typically, that is the end of the cycle for the videogame market. The one constant during this transition is the PC market. This might be the reason for the interest in MPRS. And STX, you say MPRS has no franchises? I beg to differ. I wish they had not sold off Railroad Tycoon to PopTop because that will be one of the biggest PC titles this Christmas but there is a plethora left. Falcon, X-Com, Magic, Civilization and MechCommander to name a few. They have a very proven library. As for me Sigmund, I am currently studying for my MBA at StaggerLee's "Our Lady". As for what I like: THQ and on a much more speculative front, 3Dfx and Acclaim. I think THQ will do very well this year and I am admiring Brian's skill in turning this company into one of the top 3 pure interactive entertainment companies in the world. Regards and Happy 4th to Everyone, Vic