Reply With QuoteI'm sure she was aghast when she found out how badly the studio was in the hole.
Gosh Telefrog. Was she aghast at some time previous to this quote?
When did her aghastness happen?
I'm sure she was aghast when she found out how badly the studio was in the hole.
I got that one! :)
-Tom
All right, fine, all in good fun. Still, can't the point be made that Chafee could have done more to try to help attract VC investment behind the scenes while also declining to continue throwing state money at 38 Studios rather than just publicly washing his hands of the whole thing?
What mistake would a VC be making by commenting on Chafee's remark pray tell?Originally Posted by Starlight
I mean, somehow they were all so aghast and aflutter with shock at Chafee's disclosure, yet none of them have said what they thought? None of them? All the blogs and press releases and not one VC has made these damning statements? Nothing? Not even a pip to say that Chafee ruined a great opportunity for investors? Man, that's odd.
In addition to the number of venture capitalists in the Niagara Falls area that you seem to be in regular contact with, we're just really looking for a citation here.
A VC would have to be an idiot to throw money at them in 2012, no matter what Chafee said or didn't say, even if they got 100% equity.
How about you cite one? You're the only one here insisting on VC's being "aghast" at what Chafee disclosed. No one else here is putting that statement out there. Somehow you've got this inside line on what VC's think, despite the practical evidence that no VC's thought the company was worth a damn.
Maybe Starlight (I soooo wanna type Starflight) worked for the former governor? ;)
In the Boston Magazine article, the author goes on record with something I had been told as "likely" (so we didn't explicitly use it): Until 2012, Schilling was unwilling to give up his equity in 38 Studios, which is just a non-starter for any investor. By the time he was willing to give up that equity this year, the investment was radioactive toxic with a company that had stopped paying creditors.
No VC--except perhaps those known exclusively to other members of this forum--is going to turn over $20m plus without a complete examination of a company's finances and prospects. That full disclosure would have turned up all the unpaid creditors and shaky payroll situation and that would have closed off any further dealings.
Five people walk past a blue car. One guy says: "That car is blue." That doesn't change the state of the car as perceived by the other four people who see it.
Not if they interview prospective employees.
Triggercut, Telefrog, I think you're missing the point. The point is that you should ignore Starlight.
Starlight, honest question, why are you so seemingly angry about this? To me, as an outsider in the whole affair, it appears as if the Governor's remarks are appropriate to the situation.
I don't think anyone here believes Schilling was smart to seek state funding. And yes, politicians make horrible VCs because their incentives are all wrong -- it's not their money at stake, and they have every motivation to cut loose financial boondoggles that their predecessors saddled them with, especially if it lets them score political points. That's all blindingly obvious.
But you, Starlight, keep claiming that Chafee's actions had some kind of material impact on the failure of 38 Studios. That's the part everyone vehemently disagrees with. Chafee, the smart rat, jumped off the sinking ship -- but the ship was going straight to the bottom with or without him.
Besides, for all I know there may be legal grounds to sue the RIDEC dealmakers. It's certainly not clear there aren't. And God knows VCs sue each other all the goddamned time.
Starlight, what value, exactly, did Project Copernicus and remaining 38 Studios assets and IP lose from May 1st, when Chafee goes on record, to May 15, when 38 misses payroll effectively ending their existence.
Let's hypothetical: in those 14 days, if Lincoln Chafee says nothing, how does the value of whatever assets 38 Studios possessed materially change?
I've read your replies. That's why I'm asking the question. In your reply to RepoMan, you state very clearly that Lincoln Chafee "nuked" the value of "residual assets" of 38 Studios.
Chafee spoke on May 1st. By May 15 there would have been no hiding the demise of the studio when they missed payroll.
14 days. What value, precisely, was "nuked" by the Governor's statement?
(It should also be pointed out that it is very unlikely that there are, or would ever be "residual assets" possessed by 38 Studios. In order for any of their assets to be "residual" they would have to be left over after other assets were liquidated to pay the secured debt of $49.8m to the state of Rhode Island. I do not think that there is any evidence that 38 Studios possessed at any point past February of 2012 assets whose liquidation would meet the $50m threshold to allow remaining assets to be classed as residual.)
I think I'm going to start responding to every argument by saying "Ask a VC!!" over and over again.
Wait, what? Now you're saying you were talking about the governor nuking the potential value of the assets after bankruptcy? Somehow Chafee's statements about the company's viability as an investment disrupted the sale of the liquidated assets that may have been left?
What?
Residual assets are assets remaining after secured creditors have been satisfied. As 38 Studios has a secured creditor who is owed $50m, it is unlikely that there will be residual assets for unsecured creditors. All assets will be liquidated to satisfy 38 Studio's secured debt to the state.
Care to tell us how Chafee "nuked" the value of those assets? Please?
"We don't know what Starlight is talking about either."
Starlight, I'm not sure what conspiracy you're talking about or referring to. Honestly, I'm not sure at this point that you're not drunk.
Let's go back to square one: What--in your view--is the fault to be laid at the feet of Governor Lincoln Chafee.
Let's try that and see where it gets us.
I suppose that's one translation of "You're right, triggercut, I've no idea what I've been on about." I think it also works out as "I'm sorry Telefrog, I've no answer to your assertions, I'm just sort of making stuff up as I go."
No beers for me, alas. Have to do inventory and database work at oh dark hundred.
Weaksauce. Just answer the damn question now that you've driven the train into the river.
Man, I've been reading the thread pretty attentively, and I have read all your posts, and I seriously have no idea what point you're trying to make. Regardless of whether triggercut and Telefrog are being rude to you, you're really, really not explaining your side of this well at all.
I don't think I've been rude, but if you feel that way Starlight, I apologize.
I'm really trying to understand what you're saying. So far, I can't make heads or tails of your argument. When I started to think I understood your position, you changed it to mean something else entirely.
Chafee was wrong to comment about 38 Studios financial situation in May because...?
ASK A VC!!!
Per Alan Dunkin, I've said "VC's are shit". Ask him about it!
Last edited by Starlight; 07-24-2012 at 10:45 PM.
Well, when you pigeonhole your reasoning as "shit" obviously it's going to be a waste of time.
--- Alan
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