This is not my original work. This is the reposted work of Hyona, which can be found here .
For the first source I will explain: http://iis.quamnet.com/media/IRAnnouncement/1089/EN_US/001947020-0.PDF
"PROPOSED INVESTMENT IN DIGITAL EXTREMES"
This line itself explains that the two companies, Sumpo Food and Perfect Online are proposing to INVEST in Digital Extremes (DE). This means that they want to put money into the company [DE] in hopes of profit. This investment into DE will definitely help the company in continuing their operations.
"...the Purchasers intend to purchase, and Vendors intend to sell, all the outstanding shares of Digital Extremes (“Proposed Investment”)"
In this case, the purchasers are the above two mentioned companies. The Vendors is the company [DE] or holders of these shares who wish to sell to the purchasers. Note the terms "outstanding shares", this refers to all the shares that DE has issued. The main point here is WHAT DE HAS ISSUED. To define shares, this is a unit of ownership of the company that represents an equal proportion of a company's capital. I have no knowledge of how many shares DE has issued, or if they issued any at all yet.
For this, I will explain what the person I have quoted is saying, "this is only a bad thing if Sumpo/PWE get enough shares to make decisions. If they do not, then all's well and DE just has more money to spend. If they do, then they can do pretty much what they want."
For example, DE might have issued 20% shares of their company. Perfect Online and Sumpo will buy all outstanding shares - this means they will purchase all the shares issued, that is, 20% of the company. It really depends on the amount that has been issued. Simply put, the amount of the shares sold does not have the amount of power on the company. They may have an influence and part ownership, but this does not mean that they will completely take over DE itself or affect their operations. If anything, they will only have influence but not total decision. This is why nothing has happened to Warframe as of yet.
"The Purchasers and the Vendors have not yet entered into any legally binding definitive agreement in relation to the Proposed Investment."
This means that the vendors of DE who have shares can retract from this agreement. They don't have to go through with it.
Perfect World Entertainment (PWE) buying out DE? Not likely. We don't know how many shares have been issued.
Sumpo Foods? This is only a business selling chicken meat products. What can chicken meat products do to a game company? KFC us all?
"Perfect Online". This is, as stated in the document, "a company incorporated under the laws of Hong Kong, a wholly-owned subsidiary of Perfect World Co., Ltd. (“Perfect World”), a company listed on the NASDAQ Global Select Market. Perfect World is a leading online game developer and operator based in China."
This is only a smaller branch company of Perfect World itself. They do hold influence by PWE but it's not likely that they will affect the whole operations of DE.
Please do not read articles that simply state that DE will be "bought out" by PWE. It is all dependent on how many shares DE has issued. My assumption is, DE hasn't issued more than 50% of the company. [Don't hurt me!]
No need to panic, besides, the game isn't going to be ruined simply by this negotiation. I know that PWE has "ruined" games previously, as the majority of the community has stated. But please. We really need to consider that DE will not likely sell out the majority of their company. I'm sure DE wants to have majority of control over their operations, they are a customer satisfaction business only wanting the best for the community.
Don't fight DE or Perfect Online/Sumpo Foods. Do research, remember: you are more likely to believe in something that instills fear rather than reassures you. Media is one, "http://massively.joy...gital-extremes/". No evidence to support the company has been "bought out". Where are the numbers? Truthful documents? Explanations?
Think rationally, people. I'm sure DE is concerned about this too, but only because the community is acting on this negatively. This negotiated investment is more likely to help DE continue satisfying their customers, the community, us, if it pulls through. I know this post is long... but I really hate seeing people panic and think about deleting their accounts or "abandoning ship" over something that hasn't been proven yet. Don't worry, no stress! The game is still good. It really depends on whether they have issued a lot of shares or not much at all. I'm sorry if this has come off as rude, but I want to calm your hearts. Calm down people, take it easy for the sake of DE so they can rest too.
Thanks, Hyona.
Lone tenno operative (talk)