Rumor: Microsoft interested in buying CrowdStar

[heruamon]

Legend11 said:

heruamon said:

Legend11 said:
$200 million? $1 billion? This is the dot-com bust all over again.

Except that these companies are MAKING money!  Just because most people on this site don't like social media type games, doesn't mean that their is no market place for these products...looking at a game like Resturant City...I know ALOT of people who have been rocking that game hard for almost a year now...think about it...or look at Castle Age...I've only been in it for 1 month, but I'vespent $20...ther eare people playing poker, etc...what do you'll think are the operating and development cost for them...peanuts.

True but they would be spending $200 million for what is basically a company with 20 employees, no assets except for the sixth most popular game on Facebook, and which had an initial investment of $100 thousand dollars.  Microsoft instead could use that money to fund at least 20 such games with some of the most talented people in the industry creating them.  Considering the calibur of talent I think one or more of those games would be even more popular.  Given that do you really think CrowdStar is worth $200 million?

I honestly can't say if this is the best use of M$'s investment dollars for acquisition, because know very little about the company in question, but from what I have seen from some of hte companies on Facebook and the like, with games like Mafia Wars and Castle Age, or something like Restaurant City, the microtransaction is very evident.  Is this company worth 5-6 AAA titles...dunno, but personally, I'd like to see 5-6 AAA title, over this move.  With that said, I'm not going to call it a stupid move without knowing the details.