Certainly not a good sign that the valuation of the stock continues to decline, but I'm not sure if this is as big a deal as people are making it out to be. If they want to avoid being delisted, all they have to do is do a reverse stock split. For example, they could trade investors 1 share of stock for their current 10 shares of stock. The total ownership percentage/value owned by each customer stays the same, but stock price would be multiplied by 10 at that point. I think ETrade did that a couple years ago.
The bigger concern is that the whole company is valued at like $50 million, which is less than the real value of a single good game's IP. Seems to me like a good opportunity for a larger company to swoop in and buy up whatever's valuable at bargain prices.
Log in to comment