Why did Maksim Krippa buy GSC Game World: segmental investment in business?
The news that investor Maksim Krippa became the owner of GSC Game World made an impact. Perhaps it would have been less noticeable if not for the reputation of GSC Game World, which has often flashed in the headlines in recent years with diametric references. Either "all is lost" and the company is on the verge of closure, or vice versa - a big game awaits us. It was the unstable behavior of the GSC Game World asset that caused increased interest in its acquisition by Maksim Krippa. So what is the trick?
The author's handwriting of investor Maksim Krippa:
The analysis of the acquisition history of the assets currently in Maksim Krippa portfolio suggests that the acquisition of GSC Game World is fully in line with Maksim Krippa style and business practices.
The fact is that the investor clearly prefers segment investing: he works with companies that operate within one or similar segments.
One of the distinctive characteristics of this investment strategy is the acquisition of assets of companies that are experiencing difficulties but retain their attractiveness and prospects. Simply put: every company has faced difficulties, problems, and crises at least once, and in our country, this is not something that needs to be explained for a long time. At the same time, any company, or almost any company, will eventually reach a point of no return, when revival is no longer possible. The skill of investors is to clearly identify what period of life an asset is going through.
If these are temporary difficulties that can be overcome by injecting relatively small funds and reformatting, then the game is worth the candle. If the crisis is deep and insurmountable, then investing in such an asset is like throwing money away. Maksim Krippa is an expert in such analysis and has repeatedly bought good assets in a downturn.
Investments in NAVI
Founded in 2009, the NAVI esports organization has been showing stable and excellent results. NAVI teams win and are loved by fans not only in Ukraine but also across Europe. At first glance, it seems that NAVI does not fit into the strategy of investing in a recession, but there is a nuance.
Many people think that Maksim Krippa became the owner of NAVI in 2022, when the organization was already a leader and a legend. But in fact, in 2022, Maksim Krippa became the beneficial owner, and it took him 4 years to achieve this status. And he made his first investment in NAVI in 2018, just at the time when the company's founder, Oleksandr Kokhanovskyi, was openly talking about financial difficulties and the need to find additional funds to ensure the company's growth.
Investing in Maincast
Let's look at another investment case from Maksim Krippa practice: Maincast, an esports broadcasting company. The investor started working with this asset in 2018, two months after the studio was established. Here, too, it seems that Maincast cannot be a precedent for investing in a downturn because the company is new. Yes and no. According to the studio's founder, Vitaly Volochai, Maincast was neither a continuation nor revenge after the failure of its predecessor, RuHub.
Volochai created the first broadcast studio in Kyiv in 2013 and called it RuHub, but careless behavior with Russian investors led to a complete expansion of the asset and loss of control. As a result, Volochai and his partners were forced to sell their shares and start over, and Maincast was born.
There is every reason to believe that Maksim Krippa invested not so much in an unknown new company as in the potential of partners who had experience in organizing similar activities and a strong desire to defeat RuHub. And the investor's bet paid off in spades. But it was a bet in his style of calculating ahead and soberly weighing risk vs. potential.
Investing in GSC Game World
As can be seen from the previous examples, GSC Game World fully fits the concept. The computer game production segment is close to eSports. The company is experiencing difficulties that began immediately after 2010. It is interesting that during this period, work on S.T.A.L.K.E.R. 2: Heart of Chornobyl was announced. As you know, the game's release has been postponed 5 times since then.
Almost ten years before Maksim Krippa came to the company, it had everything: financial difficulties, careless statements in the media and on social pages, copyright issues, the departure of most of the employees, and even the game's developments. Analyzing the history of GSC Game World, it seems that the asset is already very questionable. But there are nuances here as well.
GSC Game World is a global brand. It is this company that created the legendary and world-famous first-person shooter S.T.A.L.K.E.R., which is still one of the favorite games for many people. The creation of the first S.T.A.L.K.E.R. was also problematic, the release was also postponed, and users were desperate to wait. But the game's release covered everything and brought fame, recognition, and money.
Perhaps in 2024 we will see the situation repeated. In the fall of 2024, the work on S.T.A.L.K.E.R. 2: Heart of Chornobyl will be completed. And the fact that Maksim Krippa has taken over GSC Game World gives us good reason to believe that the product will be successful. In any case, the investor's calculations have never been wrong.
