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Valve Worth $3B?

Forbes declares Valve's Gabe Newell "The Newest Video Game Billionaire" in an article on the success of Valve and Steam. They admit that they can't know the true financial state of Valve, which is privately owned, but they offer a "conservative" estimate that's pretty eye-popping: "Even the most conservative estimates put Valve’s enterprise value at more than $3 billion, and since Newell owns more than 50% of the company, that means he’s worth at least $1.5 billion."

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56. Re: Valve Worth $3B? Mar 13, 2012, 08:38 Mr. Tact
 
For the record: Sepharo was right, I did have a SteamID. It was simply a bit obfuscated due to the fact I had not completed my Steam profile. My profile says 34 games, the calculator said 26 games worth $345.75. So, wimpy compared to others here -- on the bright side I was pleasantly surprised to get my desired "ID" and personal page:

http://steamcommunity.com/id/mr_tact

 
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55. Re: Valve Worth $3B? Mar 12, 2012, 22:49 Sepharo
 
Link me your profile and I'll link you your SteamID.  
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54. Re: Valve Worth $3B? Mar 12, 2012, 22:46 Mr. Tact
 
I have Steam, just bought Vessel through it yesterday. The SteamID is another level of identification.  
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53. Re: Valve Worth $3B? Mar 12, 2012, 22:28 Sepharo
 
Do you need Steam to use the Steam Calculator?

Yes.
 
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52. Re: Valve Worth $3B? Mar 12, 2012, 21:29 Mr. Tact
 
Apparently you need a SteamID to use the calculator.. oh well.  
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51. Re: Valve Worth $3B? Mar 12, 2012, 12:15 Verno
 
Sepharo wrote on Mar 12, 2012, 11:57:
650k have run their profile through the tool?

Yeah that's what I assumed. I guess the total calculations is the number of games on all accounts run through it or something.
 
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50. Re: Valve Worth $3B? Mar 12, 2012, 12:03 Mr. Tact
 
Oh, good idea Sepharo. That may be correct, it would certainly explain the average games per account of "68" also, which sounded dubious. But it makes sense if it's only counting people using the tool.  
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49. Re: Valve Worth $3B? Mar 12, 2012, 11:57 Sepharo
 
Verno wrote on Mar 12, 2012, 11:28:
Mr. Tact wrote on Mar 12, 2012, 11:01:
Efflixi wrote on Mar 8, 2012, 06:08:
http://www.steamcalculator.com/
Wait -- only 650k accounts? Really? I would have guessed WAY more than that...

Yeah that's not correct, there is something like 35 million unique accounts on Steam.

650k have run their profile through the tool?
 
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48. Re: Valve Worth $3B? Mar 12, 2012, 11:51 Mr. Tact
 
Ok, that sounds more like what I was expecting.  
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47. Re: Valve Worth $3B? Mar 12, 2012, 11:28 Verno
 
Mr. Tact wrote on Mar 12, 2012, 11:01:
Efflixi wrote on Mar 8, 2012, 06:08:
http://www.steamcalculator.com/
Wait -- only 650k accounts? Really? I would have guessed WAY more than that...

Yeah that's not correct, there is something like 35 million unique accounts on Steam.
 
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46. Re: Valve Worth $3B? Mar 12, 2012, 11:01 Mr. Tact
 
Efflixi wrote on Mar 8, 2012, 06:08:
http://www.steamcalculator.com/
Wait -- only 650k accounts? Really? I would have guessed WAY more than that...
 
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45. Re: RE: Follow up Mar 8, 2012, 19:21 killer_roach
 
Dev wrote on Mar 8, 2012, 18:56:
Prez wrote on Mar 8, 2012, 18:02:
Now I just need you guys to help me convince him some of that $1.5 billion is mine. I'm thinking 5% sounds fair.
Start a group where you only invite 500+ game owners, and then you will have more weight behind you when you ask him

Guess I'd have to join his group, then...
 
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44. Re: Valve Worth $3B? Mar 8, 2012, 19:14 killer_roach
 
Creston wrote on Mar 8, 2012, 16:32:
If Steam had a billion dollars worth of revenue last year, there's no way Valve is valued at "just" 3 billion. Any way, it's still an incredible number

Creston

Depends on what their profit margin is. Assuming they're still growing at a relatively brisk pace, a $3 billion valuation would assume they have profits of around anywhere from $75-150 million. If their revenues are actually $1 billion (nobody knows for sure - some say it was around there, others put their profit numbers in that territory), assuming an Apple-like profit margin (about 25%), that would put profits around $250 million, and, applying a pretty standard P/E ratio of 30-40 for growth companies, that would put them around $7.5-$10 billion in total market capitalization. (Obviously, if the "$1B profit" number was right, then Valve could be stupid huge, possibly in the $30-40 billion range, which would effectively make them larger than Sony.)

Of course, if Valve went public, I'd assume that the practice of employee bonuses would likely be handled through distributing preferred stock to existing personnel, which could both a) depress the perceived value of any offered shares and b) cause a significant run-up in the stock upon IPO due to a relatively small amount of the company being up for offer (if Valve went public, I'd assume they do something similar to what Zynga did, and only offer for sale public shares amounting to a small percentage of the company - Zynga's IPO was 10% of the total share base).
 
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43. Re: RE: Follow up Mar 8, 2012, 18:56 Dev
 
Prez wrote on Mar 8, 2012, 18:02:
Now I just need you guys to help me convince him some of that $1.5 billion is mine. I'm thinking 5% sounds fair.
Start a group where you only invite 500+ game owners, and then you will have more weight behind you when you ask him
 
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42. Re: RE: Follow up Mar 8, 2012, 18:02 Prez
 
The Half Elf wrote on Mar 8, 2012, 02:49:
UConnBBall wrote on Mar 7, 2012, 21:59:
Glad he made the money since I am sure I had a pretty good part in him being so wealthy.

No sir, that would be Prez, isn't that right Mr 'I own everything short of the Railworks DLC on Steam'?

Now I just need you guys to help me convince him some of that $1.5 billion is mine. I'm thinking 5% sounds fair.
 
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41. Re: Valve Worth $3B? Mar 8, 2012, 16:32 Creston
 
If Steam had a billion dollars worth of revenue last year, there's no way Valve is valued at "just" 3 billion. Any way, it's still an incredible number

Creston
 
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40. Re: Valve Worth $3B? Mar 8, 2012, 15:19 Verno
 
I don't know, yay for Gabe indeed. I'd rather the owner of the biggest PC gaming company be a nerd who keeps samurai swords in his office and plays DotA as opposed to some nameless/useless MBA type like EA/Activision.  
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39. Re: Valve Worth $3B? Mar 8, 2012, 11:24 avianflu
 
Er, yay for Gabe I guess?  
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38. Re: Valve Worth $3B? Mar 8, 2012, 09:40 Verno
 
eunichron wrote on Mar 7, 2012, 22:35:
But why would Valve even bother buying out EA? Valve is already one of the best publishers, and practically has the DD market cornered with Steam. They have no reason to want to buy out anyone else.

Indeed, Valve doesn't need EA. In fact EAs large staff of middle management, MBA and marketing types would likely be a severe hindrance.

EA isn't really a gaming company anymore. EA is a marketing company that happens to make money using videogames.

They bombard the market with yearly installments, multiple SKUs and widespread advertising. They want your money up front, they want it at point of sale and they want it after the sale. It's an out of control gravy train that at some point is going to slam into indifferent consumers and I pity the industry at large when it happens because a lot of people could be affected by it. It's a shame because they did make a genuine effort with unique properties and less DRM but they didn't have the patience to see it through.
 
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Playing: Alien Isolation, 7 Days to Die, Dragon Age Origins
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37. Re: Valve Worth $3B? Mar 8, 2012, 09:36 Dev
 
Pankin wrote on Mar 8, 2012, 08:35:
Efflixi wrote on Mar 8, 2012, 06:08:

http://www.steamcalculator.com/

Nice one. I'm at a paltry $758.49
It claims I'm at $5k+
 
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