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Old 01-05-2014, 01:49 PM   #31
Silas Loki
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True, to a certain extent. Again, I clearly don't have the facts.....but, there tends to be two root causes for a company to be bought out. The first is due to desperation, by that I mean the company has hit dire straights, and the board / investors agree to sell the company to pay off debt, etc. The second is based on strategic expansion, generally to allow the company to prosper and achieve higher state goals. In the second example, the owners / investors choose to sell with a much more discerning criteria for its buyer, and normally with clauses in the agreement that will allow the purchased company to continue to operate under its own management..... All of this ignores back room politics and business wrangling that forces the sale of a company, which I guess could fall under example number 1.

Considering all of that, the purchasing company appears to have direct relevance to the operations of GG, albeit from a tool set perspective. Added to that, there has been little to no mention anywhere of GG being in financial trouble.....so, I can only assume this decision to sell to be of a strategic nature with a view to increasing the companies overall value in its chosen market place.

Will this mean more and better products? Quite possibly. My guess is that GG marketed itself to the buying company with talk about high end collectibles, not an ability to crank out cheap toys. The recent announcement of 1/4 scale products from highly lucrative licenses may have been something of a sweetener to any perspective buyer.....not only that, but the record breaking retail prices of the Honey Trap line, without licensing burden, would surely prove to any buyer the potential the company has to return a profit.....
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Old 01-05-2014, 02:29 PM   #32
SolidLiquidFox
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The only point of reference I have for something like this is Corgi buying Master Replicas. That one didn't end up well but then again circumstances were different.
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Old 01-05-2014, 03:26 PM   #33
JP Sarri
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Quote:
Originally Posted by SolidLiquidFox View Post
The only point of reference I have for something like this is Corgi buying Master Replicas. That one didn't end up well but then again circumstances were different.
That is a great example.

There is no denying that Gentle Giant needs the funding to pursue a wider market. Expansions are good but they also come with baggage. It is all about the mindset. Companies that are bought have to align themselves with the mentality of their new owners. If they do not share the same vision, everybody is on a hell of a ride. Investors are interested in making profits, they are not here for the love of the art. There is clearly an opportunity for greater things here, but for a catastrophe as well. After all, any business is a gamble for all the people involved.

Many great companies started small and had to depend on external investment to stay afloat. Some have flourished (like SS or Hot Toys), some have failed (like Palisades or Hard Hero) and some have almost disappear (like Master Replicas and Diamond Select). At the end of the day, good quality products cannot guarantee you financial sucess. You have to have all your ducks in a row.

My desire is for GG is to suceed. I love what they bring to the table and the healthy competition that is generated by their existence. Time will tell if this change is for the best. I am hopeful but cautious.
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