Tag Archives: Pandemic

Boardgames in the News: Who are PAI Partners and what do they want with Asmodee?

A couple of months ago, Reuters reported that according to un-named sources, investment bankers had been hired to run the sale of Asmodee.  The claim was that the sale “could value the company at over €1.5 billion”, but there was no credible information as to who the potential buyers were.  This mystery has now been solved with the announcement that PAI Partners have entered into exclusive discussions to acquire Asmodee, a company with an enterprise value of €1.2 billion.  So, who are PAI Partners and what do they want with Asmodee?  Well, PAI is a European private equity company, that grew out of the merger between the French banks, BNP and Paribas in 1993, with a management buyout completed in 2001.  They have invested in a wide range of companies covering everything from yoghurt (Yoplait) to tyres (Kwik Fit) to cargo handling (Swissport).  Obviously PAI are interested in making money from Asmodee, but at this time there is no evidence to suggest that would by by asset stripping.  Price increases would be almost inevitable however, as the Studios would be under pressure to provide a good return on the investment.

PAI Partners
– Image from paipartners.com

Spiel des Jahres Nominations 2018

Almost every time we’ve played Azul, the topic of conversation has moved on to the Spiel des Jahres and how it would be a travesty if it did not receive at least a nomination. It was with this in mind that we read the Spiel des Jahres nominations when they were announced this morning.  There are three nominees in each of the three awards:  a children’s game award (Kinderspiel des Jahres), the “Advanced” or “Expert” Kennerspiel des Jahres, and the main Spiel des Jahres (often interpreted as the “Family Game” award).  In addition, for the first time since 2010, there is also a special award for Pandemic Legacy: Season 2 by Matt Leacock & Rob Daviau, reflecting Pandemic, Forbidden Island and Pandemic Legacy: Season 1 that were all nominated, but failed to win a prize, and have had a significant influence on cooperative and legacy games as a whole.  The other nominees are:

  • Kinderspiel des Jahres
    Kinderspiel des Jahres 2018Emojito! by Urtis Šulinskas
    Funkelschatz (aka Dragon’s Breath) by Lena & Günter Burkhardt
    Panic Mansion (aka Shaky Manor) by Asger Harding Granerud & Daniel Skjold Pedersen
  • Spiel des Jahres
    Spiel des Jahres 2018Azul by Michael Kiesling
    Luxor by Rüdiger Dorn
    The Mind by Wolfgang Warsch

Firstly, more than half of the nominees were designed by either Wolfgang Warsch, or Michael Kiesling, so huge congratulations to them.  In our view, Azul richly deserves it’s nomination and it would be no surprise if it ultimately wins the award.  Of the other two nominations for the “red pöppel”, The Mind has received quite a lot of attention, and is a bit like a cross between Hanabi and The Game (both of which have been acknowledged by the Jury in the past, in 2013 and 2015 respectively).  Luxor has a good pedigree as it is designed by Rüdiger Dorn (also designer of The Traders of Genoa, Goa, Istanbul, and one of our group favourites, Las Vegas), but it is a bit more of an unknown as it has only just come out.  Usually the Kennerspiel Prize winners are a good fit to our group, but this year they are also largely unknown to us, so there is clearly a lot to discover before the winners are announced in Berlin on 23rd July (Kinderspiel des Jahres winners will be announced in Hamburg on 11th June).

Spiel des Jahres
– Image from spieldesjahres.de

 

Boardgames in the News: Asmodee For Sale‽

Over the last few years Eurazeo have developed Asmodee from a small French games company primarily known for a clever little kids game called Dobble, into an industrial conglomerate swallowing up the likes of Days of Wonder, Fantasy Flight Games, Z-man Games, Mayfair, and Lookout Spiele.  In the process, Asmodee added some of the most high profile modern boardgames to their portfolio, including Ticket to Ride, Carcassonne, Pandemic, Agricola, Star Wars X-Wing Miniatures Game, SplendorDead of Winter, Settlers of Catan (now known simply as “Catan”) and as of this weekLove Letter.  Speculation as to the end result has been rife, here and elsewhere.  Indeed, three months ago we raised the question:

…it would seem that Eurazeo is not looking to hold onto Asmodee for the long haul, instead they will be looking to maximise Asmodee’s growth and then make their exit, probably in the next two to five years.  So the big question is, how are Eurazeo going to make their “controlled exit”?

Reuters now reports that according to un-named sources, the answer is, “Sell Asmodee”.  Apparently, investment bankers have been hired to run a sale process which they claim could value the company at over €1.5 billion (quite a return for Eurazeo who originally paid €143 million for Asmodee in November 2013).  As yet, there is no credible information as to who the potential buyers may be, but if the news that Asmodee is to be sold is true, there will no doubt be plenty of speculation over the coming weeks and months.  Possibilities range from a major toy manufacturer like Hasbro or Mattel wanting to add expand their range of boardgames, to venture capitalists companies going for maximum short term profits, leading to reduced quality and increased prices.  No doubt, time will tell…

Asmodee
– Image from forbes.com

Boardgames in the News: What is Asmodee’s Grand Plan?

Four years ago, Eurazeo bought a small French games company called Asmodee from the investment firm, Montefiore.  Asmodee were a small company hitherto primarily known for a clever little kids game called Dobble.  With the financial might of their parent company behind them, over the next few years, Asmodee proceeded to gobble up many larger, well-established companies, including Days of Wonder, Fantasy Flight Games, Z-man Games and most recently, Lookout Spiele.  Those companies produced some of the best known modern games including Ticket to Ride, Carcassonne, Pandemic, Agricola and Star Wars X-Wing Miniatures Game.  Not content with that, they also acquired the rights to the English language version of the Settlers of Catan (now known simply as “Catan”) and all the related Catan games as well as gobbling up a number of smaller and/or newer companies like Space Cowboys (producers of Splendor and Black Fleet) and Plaid Hat Games (producers of Dead of Winter and Mice and Mystics) and entering into a distribution agreement with many others.  There are now very few games companies of any substance that are not somehow tangled in the Asmodee web.

Star Wars: X-Wing Miniatures Game
– Image used with permission of BGG contributor adamfeldner

The last major purchase was F2Z Entertainment in 2016, and since then it has been relatively quiet.  With the new year comes a new wave of acquisition, however, so at the end of January Asmodee announced that they were in exclusive negotiations with Rebel.  Rebel is a relatively small, Polish company responsible for games like K2 as well as Polish editions of many popular games like 7 Wonders and Codenames.  Perhaps more importantly, Rebel also produces the Polish language versions of many of the Asmodee games and is the largest distributor in Poland.  And Poland is a big country, smaller than France or Germany, but bigger than Italy and the UK,  globally Poland is the thirty-forth largest country by population.  That is a lot of Poles and they do like playing board games in Poland.

K2
– Image used with permission
of boardgamephotos

This announcement was almost immediately followed by the bombshell that Asmodee had acquired all the residual assets from Mayfair and with it, Lookout Spiele. Although this is by far the largest deal in recent months, Asmodee have not been resting on their laurels and there has been a lot going on behind the scenes.  In December last year they announced that Esdevium was to be renamedAsmodee UK” bringing them in line with the “Asmodee North America” and “Asmodee Canada” brands.  At around the same time, Eurazeo announced that French publisher Purple Brain Créations would be joining the Asmodee Group.  Furthermore, they have also been streamlining their distribution network in North America.  Having reduced the number of distributors they deal with to five in 2015, in June last year Asmodee North America announced an exclusive distribution deal with Alliance Game Distributors, effectively creating a monopoly of supply within the USA.  This coupled with their Minimum Advertised Price policy (or MAP) gives them a stranglehold on the US market in a way that would never be allowed in Europe.  Whether they are planning to take that one step further and acquire Alliance themselves still remains to be seen, but that looks like a real possibility.  Finally, they have been pushing in a new direction, developing electronic versions of some of the most popular games through their studio, “Asmodee Digital“.

Asmodee
– Image from forbes.com

So what is Asmodee‘s Grand Plan?  Where will it all end?  Well, there are still a couple of other large manufacturers out there that are not yet part of Asmodee.  Looking at the companies they have already absorbed there is a clear trend: they typically have one particular feature that Asmodee are interested in.  In the case of Days of Wonder, that was the Ticket to Ride series, with Z-man Games it was Pandemic and Carcassonne, and with Rebel, it was probably their distribution network that caught the eye of the executives at Asmodee.  Going forward, the most obvious targets are probably Rio Grande Games, Czech Games EditionQueen GamesHans im Glük and maybe 2F, or Pegasus Spiele (who have just announced a partnership with Frosted Games).  For example, it would be surprising if Rio Grande Games have not been approached given the popularity of games like Dominion and Race/Roll for the Galaxy.  Similarly, Czech Games Edition are a small company with some very juicy morsels including Galaxy Trucker, Dungeon Lords/Petz, and the hugely successful Spiel des Jahres winner, Codenames.

Codenames
– Image by boardGOATS

Ultimately they may or may not add some or all of these to the Greater Asmodee Empire, but it is clear that at some point, eventually, there will be nothing left worth taking over and growth of the company will plateau, so what happens then?  And this is the crux of the matter. Some have speculated that the aim is to add Hasbro to Asmodee’s ever growing dominion, but Hasbro has a market value of $11.9 billion—Asmodee are mere minnows in comparison.  On the other hand, the parent company, Eurazeo are worth approximately $5.7 billion, which at least puts them in the same ball park, although even they are small by comparison.  According to the “Vision” page on the Eurazeo website:

The purpose of Eurazeo is to identify, accelerate and enhance the transformation potential of the companies in which it invests, even long after its exit. An active and committed shareholder, Eurazeo assists its holdings in the long term – 5 to 7 years – with control over exit timing. An extensive role enabling it to combine business development and corporate social responsibility.

So, it would seem that Eurazeo is not looking to hold onto Asmodee for the long haul, instead they will be looking to maximise Asmodee’s growth and then make their exit, probably in the next two to five years.  So the big question is, how are Eurazeo going to make their “controlled exit”?  With this in mind it seems unlikely that acquiring Hasbro is on the agenda, but making Asmodee attractive to Hasbro just might be…

Hasbro
– Image from twitter.com

Boardgames in the News: Asmodee Take Over Canada

The Canadian company, F2Z Entertainment, own Filosofia Éditions (who bought Z-Man Games in 2011) and are also the parent of company of Pretzel Games and U.S. company Plaid Hat Games.  Given the rate that Asmodee have been gobbling up games companies, it seemed only a matter of time before they turned their attention to F2Z Entertainment.  It seems their enticing range of games, which include Pandemic, Dead of Winter and Carcassonne, was just too much and in July, Asmodee announced that it had entered into exclusive discussions to acquire F2Z Entertainment.  These discussions are now concluded and, as of today, F2Z Entertainment, will be known as Asmodée Canada.

Asmodee Canada
– Image from trictrac.net

So, who will be next? Rio Grande Games perhaps?  Or maybe Czech Games Edition or Pegasus Spiele will be their target following their recent successes in the Spiel des Jahres and Deutscher Spiele Preis?  Time will tell.

Boardgames in the News: Asmodee on the March Again?

It’s been quite quiet recently, but summer is now here and with it, the silly-season of take-overs and mergers, which inevitably means Asmodee are at it again.  Asmodee, (originally known as Siroz), started out as a small French game publishing and distribution company, specialising in the family market.  Their best-known product was probably Dobble, though there were others too.  In 2007, the investment firm, Montefiore acquired 60% of the company and invested €120 million to finance Asmodee’s international growth.  Their expansion history began a bit like this:

Meanwhile, the Canadian F2Z Entertainment, the parent of company of Pretzel Games, also own Filosofia Éditions (who bought Z-Man Games in 2011) and bought the U.S. company Plaid Hat Games last year.  Then, in January 2014, the private equity company Eurazeo bought 83.5% of Asmodee and the mad expansion began all over again, but this time in earnest:

Last summer we speculated how long it would be before Asmodee turned their attention to F2Z Entertainment with their enticing range of games including Pandemic and  Carcassonne.  Well, last week, Asmodee announced that it has entered into exclusive discussions to acquire F2Z Entertainment with closure of the acquisition expected to take place in the coming months.  Who will be next, Rio Grande Games perhaps?

Asmodee
– Image from forbes.com

Boardgames in the News: Asmodee Update – Taking Over Catan and Other Stories

A year ago, following their acquisition of Esdevium GamesLibellud, Days of Wonder, Fantasy Flight games, Ystari Games, Asterion Press and Pearl Games we discussed the sudden expansion of the hitherto small French games company, Asmodée.  More recently, following a new contract with Queen Games for exclusive distribution rights in the USA and the ensuing restructuring of its three main US operations, Days of Wonder, Fantasy Flight games and Asmodee Editions to form a single entity, Asmodee North America, we wondered whether this growing monopoly would lead to price rises.  This concern arose, in particular, as from January 2016, distribution would be restricted to “speciality retailers” that have agreed to Asmodee North America’s “Speciality Retail Policy” including the prohibition of online sales.

Asmodee North America
– Image from Asmodee North America Press Release

Asmodee followed the initial press release with a second press release clarifying their position, in the form of a series of questions with answers. This did not completely allay many of the concerns, however, to the specific question, “…will you institute or impose official price floors or “minimum advertised price” policies”, they responded, “No”.  There has been a considerable speculation, but it seems clear from this “clarification” that although they intend to restrict “speciality retailers” to face-to-face transactions, this will not affect mass market outlets, such a Amazon, Target, or Barnes and Noble.  Another way of looking at it is that the medium-sized online vendors including, CoolStuffInc and Miniature Market (who are popular with US Geeks thanks to generous discounts), will no longer be able to sell Asmodee North America products, however, players like Amazon etc. are too big to be susceptible to their bully-boy tactics.  We will see what happens in the long run, but for the time being, so much for the end of 2015 press releases.

The Settlers of Catan
– Image by boardGOATS

With the new year, there are new take-overs, and unsurprisingly, Asmodee are at the centre once again, this time announcing that they are taking over the production of the English language edition of Catan (formerly known as “The Settlers of Catan”)Celebrating its twentieth anniversary last year, The Settlers of Catan has been translated into thirty-five languages and is reported to have sold over twenty-three million copies worldwide.  As such is it one of the biggest names in the world of modern boardgames.  With this acquisition from Mayfair Games, Asmodee have also announced that they will launch a subsidiary, “Catan Studio”, dedicated to the creation of content for different media for the “Catan Universe”.  Catan Studio will be headed by Peter Fenlon, former CEO of Mayfair who will work with Catan GmbH and its partners on this development.

Ticket to Ride
– Image by boardGOATS

With this acquisition, it brings Catan, Ticket to Ride and Star Wars: X-Wing Miniatures Game as well as the very popular card game, Dobble, all under the same roof.  So, what next?  Surely bringing together such a large slice of the modern gaming market makes Asmodee themselves a potential take over target.  In fact, perhaps the only question is whether the likes of Hasbro will make a move before or after Asmodee make their next acquisition.  Any bets on the future of Filosofia/Z-man Games with Pandemic and Carcassonne…?

– Image used with permission of BGG contributor adamfeldner