Why is buyout price not tied to net worth?

vector · Post by **vector** » Sun Dec 17, 2006 2:39 am

OKay, so a friend and I were testing out something:

My Net worth 27M
His net worth was 43M

My buyout price was 18M
His buyout price 23M

Why isn't his buyout price AT LEAST 43 and mine AT LEAST 18M?

We both owned 100% of our own stock.

Your buyout price should be at LEAST your net worth. Anything less is absurd.

What is the formula for determining Net worth? What is the formula for determining buyout price?

Firaxis? I am confused on this.

vector · Post by **vector** » Sun Dec 17, 2006 2:52 am

Maybe the game says:

Buyout Price = Networth - Cash On Hand?

If so, I still disagree:

"Net worth is the total assets minus total liabilities of an individual or company."

Assets = Liabilities + Owners Equity

Owners Equity INCLUDES cash.

snoopy55 · Post by **snoopy55** » Sun Dec 17, 2006 4:56 am

If I buy a new truck for $20,000. I make $15,000 cash from it and the upkeep was $5000. I have $10,000 cash left. The truck at this time Blue Books for $10,000. If you 'buy me out' You pay me an agreed-upon price for the truck, say $8500. You don't get the $10,000 cash, you get the truck at the agreed price of $8500. If my company has money in the bank, I'm not to sure what happens then. But the whole thing is a sale of the railroad for a certain price. How the program figures that I don't know. Remember, your buying it lock, stock, and barrel, which is based on company assets and holdings.
One problem I see is if I hold 40% of a companies stock and you hold none of it, if you buy it I should get 40% of what you paid. If I buy it, I should get it at the price - 40%.

vector · Post by **vector** » Wed Dec 20, 2006 1:38 am

firaxis?

DavidC · Post by **DavidC** » Mon Jan 01, 2007 6:45 pm

@vector
in the first place: why can some other player (AI) buy you out when you as a manager own all of your stock. And why can they do it without any notice or approval, just by the rather silly equation it uses, as you have proven

snoopy55 · Post by **snoopy55** » Mon Jan 01, 2007 9:25 pm

vector wrote: My Net worth 27M
His net worth was 43M

My buyout price was 18M
His buyout price 23M

Why isn't his buyout price AT LEAST 43 and mine AT LEAST 18M?

I was playing a game and I owned 9 shares and Jim Hill owned 1 share. The buyout price was showing ~ $2mil. Stupid? No, it was correct, for ME to buyout myself and be self owned, or really to buyout what Jim owned of me.

In short, what you see on the screen is all for your info, not your opponent, His numbers are different. Jim would have had to pay ~ $18mil + assets to buyout me (~ $2mil per 1000 shares X 9). So the screen is correct, for you.

We need some data from Firaxis on how this was figured.

Magnumaniac · Post by **Magnumaniac** » Thu Jan 11, 2007 5:03 pm

Now here is an example of the real stupidity of the buyout numbers....

NE US map, Tycoon, 3 opponents. I'm moving on Jim Hill's stock - and he is retaliating in kind until we get to:

My stock - me 50%, JH 50%, buyout price for me ~12.5mill
Jim Hill stock - JH 40%, me 50%, other 10%, buyout price for me ~6mill

Now, it is clear that if I buy out Jim Hill for 6 million, I also get 12.5 million worth of my own shares as part of the deal - or I could always pay 18.5 million to get the same end result.

Something is seriously wrong with the calculations somewhere.

Kroguys · Post by **Kroguys** » Thu Jan 11, 2007 9:43 pm

From a Multiplayer perspective I actually like the way Buyout works now. It evens the playing field so that whom ever is losing still has a chance to win. If he plays his cards right.

grover · Post by **grover** » Sun Jan 14, 2007 10:14 am

Why dont we get their cash as well?

I ws playing multi today and took over someone who I knew had 5 mil cash.
But I didn't get any of it

Krupo · Post by **Krupo** » Sun Jan 21, 2007 10:17 pm

Magnumaniac wrote:Now here is an example of the real stupidity of the buyout numbers....

NE US map, Tycoon, 3 opponents. I'm moving on Jim Hill's stock - and he is retaliating in kind until we get to:

My stock - me 50%, JH 50%, buyout price for me ~12.5mill
Jim Hill stock - JH 40%, me 50%, other 10%, buyout price for me ~6mill

Now, it is clear that if I buy out Jim Hill for 6 million, I also get 12.5 million worth of my own shares as part of the deal - or I could always pay 18.5 million to get the same end result.

Something is seriously wrong with the calculations somewhere.

The system is set up so that you pay double for stocks you're "forcing" out of someone else's hands.

The calculation is correct, the mechanism is just lousy.

If they put a little thought into it, they should add a warning message saying, "You can get X% of your shares for 50% of the price if you just buy Jim Hill and his X% of your shares NOW, then buy the rest of your shares for cheaper."

Experienced players will know this, but it's a kick in the balls for newbies (and any experienced players who forget!).

Grover wrote: Why dont we get their cash as well?

It's a crappy decision on the part of Firaxis.

If you could get all their money, you would probably be quickly able to buy out *everyone* else because you'd have... a lot more money!

I think this WOULD be the correct way to go about things.

I think they deliberately "disappear" the money to screw you over and make the game last longer.

Of course, the game is short enough as it is, so they get away with this little hack.

Still pisses me off though.

Smr Simple!

Why is buyout price not tied to net worth?

Why is buyout price not tied to net worth?

Re: Why is buyout price not tied to net worth?