Holy shit….

TechCrunch reports that Sony is in talks with Club Penguin to buy the latter for upwards of half a billion! The article says 500,000 active users but I know that’s low by at least a factor of two, $65 million in annual revenue and $35 million in annual profit. Those numbers make half a billion seem almost reasonable. That’d be a P/E ratio (price/earnings) of about 14, which is not outrageous at all for a growing company.

I know Jagex (creator of Runescape) has turned down offers exceeding $100 million, which I thought was a bit insane when I heard it (from the would-be buyer) and it is clear now that they were probably right to do so.