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| [May 29, 2012, 11:25 am ET] - Share - Viewing Comments |
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| 9. |
Re: etc. |
May 29, 2012, 14:28 |
Beamer |
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I think it's pretty safe to say everyone fucked everyone here. There's no conspiracy, and no one is happy.
1) RI stupidly gave 38S money. Very stupidly. Schilling is a local hero and someone was blinded by this. I'm all for governments funding innovation, but video games aren't what I'm thinking. Heavy industries, alternative energy - all the things that will lead to giant breakthroughs that we're no longer really privately funding as much as we should. Not video games...
2) Schilling and co. clearly ran the company less than optimally, but in part because they had a nice cushion of cash from RI, from private investors and from Schilling's own pockets. It was a good opportunity
3) The new governor pulled much of that. Can't entirely blame him, it was a bad expense, but it caused everything to collapse
In the long run, though, pulling that funding may end up costing RI more, as they'll never see anything back. Had they helped keep 38S afloat, which it seems they had promised to before pulling all the funding they'd originally allocated, maybe 38S would have bounced back. That extra $25MM, plus any private investor money, could have kept the company afloat long enough to pay back that original $75MM bond.
It was still a huge gamble, though. I think the blame is most easily thrown at the feet of the people that made this deal in the first place. |
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