Funcom going belly-up sooner rather than later?

**Joker** · 08-18-2008

http://mmorpg.com/discussion2.cfm/thread/194803/page/1

(some relevant links in that thread)

Funcom lost about $6 million in the second quarter, and the CEO dumped 19% of his shares Friday. The stock dropped 20% and has dropped another 25% or so today in the first couple hours of trading.

Q2 report shows big debt, no money, and no future cashflow. If the Xbox port gets shitcanned (which I think is likely), then it could be tits up for FC!

Edit: Stocked peaked at about $55 at launch time, now down to $14. It has rebounded a little to only be about 9% down for the day.

**Squrf** · 08-18-2008

I'd love to see this happen. A little bit of a wakeup call with regards to pushing terrible games out the door.

**Joker** · 08-18-2008

So would I, for the exact same reason.

Also, volume is really high again today, just as it was Friday. It appears someone dumped another 375,000 shares right at opening. That almost has to be the CEO or another insider again.

**Squrf** · 08-18-2008

Man. I have to watch for another debacle like this. Dropping $40 in 3-4 months? Could have made a fucking killing on that. Visions of put options dancing in my head. The company's going to go bust by 1Q09, if not sooner.

**Joker** · 08-18-2008

Quote:

Originally Posted by Squrf

Man. I have to watch for another debacle like this. Dropping $40 in 3-4 months? Could have made a fucking killing on that. Visions of put options dancing in my head.

rofl.. someone else in that thread said exactly the same thing.

**Rann** · 08-18-2008

Hey now, I actually play anarchy online every now and then.

**Joker** · 08-18-2008

lol... better buy a few more subs! ;p

I don't think they will go underwater tomorrow; they still report having $36 million in cash, even though they just lost 6 million (8 million after taxes).

BUT... that's $16 million less than they had in their last report, AND they have $26 million in debt, $23 million of which is short-term (due sometime within the next two years) debt.

I guess now we know why they've behaved so desperately and have gone to things like charging $2.99 to download the "free trial."

**Valstorm** · 08-18-2008

What are the chances of EA buying up all the shares? I'd probably hang onto mine if I had em, just for such a scenario.

**Squrf** · 08-18-2008

I don't think even EA would touch them. They've got next to no chance of recovery. They'll probably get their IP part and parceled out like Flagship Studios.

Lhurgoyf · 08-19-2008

At least its a slow death!

Thats always a perk!