What video game companies could the Powerball Jackpot winner buy? The Powerball jackpot has officially concluded its current run, with a $1.765 billion prize going to one lucky California resident. With such a big prize pot, it does beg the question of what they plan to do with all the money.
As a bit of daydreaming, let’s look at what video game companies the winner could buy. There are some qualifying criteria, that will be covered, but the winner could have quite a nest egg waiting for them if they purchase any of these businesses.
How Much Money Did the Powerball Jackpot Winner Actually Take Home?
Taxes and Other Processing Fees
So, the $1.765 billion jackpot doesn’t actually translate to that much for the winner. Instead, there is a lower cash value available to the winner. Most lotto winners will take a lower lump sum right out of the gate, rather than opting for yearly payments spread across a number of decades.
The lump sum provided is $774.1 million, almost a billion dollars shorter than the original jackpot. This has a further 24% withheld from the proceeds, which will go to the federal government. That brings the total down to $588.4 million. Another 13% will be expected in taxes from the federal government, as lottery winnings count as taxable income.
This leaves a cool $511.91 million to the winner’s name, well under a third of the original jackpot. This is still a life-altering amount of money, however.
Applying Their Winnings Toward a Video Game Company
Purchasing video game companies isn’t quite like most other purchases a consumer will make. The best bet is to purchase a controlling stake in the company, or around 50% of the total shares if they are publicly traded. This gives you a good foothold in the company, while still retaining some financial freedom to apply your funds elsewhere.
The Powerball Jackpot Winner Could Buy These Computer Companies
SciPlay: Market Cap of $494.63 Million
SciPlay is a video game company centering around online gambling. With a market cap valuation of nearly $500 million, the Powerball winner could purchase it outright. However, a 50% controlling stake is heavily recommended. SciPlay has a steady market presence, thanks to capitalizing on the lucrative field of online casino games.
It isn’t what most users will think of when video game companies come to mind. However, it still very much falls under the same umbrella as casual and mobile games. The only real difference is you’re gambling with actual money instead of contending with lootboxes.
Gravity: Market Cap of $458.35 Million
Gravity is one of the largest studios in South Korea. With notable games like the revered Ragnarok Online under its control, it is a sure-fire winner. The Powerball winner could purchase a controlling stake in this company and have a slice of MMO history in their portfolio.
South Korean MMOs are a dime a dozen, but few have the lasting appeal and cultural impact of Ragnarok Online. Other games published by the company include hit titles like ROSE Online, and numerous mobile titles based in the Ragnarok setting.
Sohu.com: Market Cap of $301.95 Million
Sohu.com is a massive company with a focus on social media and game development. The Powerball winner could easily purchase a controlling stake in this China-based development firm. Sohu is quite a popular platform in mainland China, and its casual web game market has plenty of users in Asia. Sohu.com might be a more questionable purchase, despite its lower buy-in cost at 50% market valuation.
Bragg Gaming Group: Market Cap of $106.17 Million
Bragg Gaming Group is yet another online gambling-based company. The main focus of the company seems to be entirely driven around video slots, a highly popular gaming type. Content is derived from numerous third-party partners, like Sega’s parent company Sega-Sammy.
As with all of these gaming companies, Bragg Gaming Group might be a fun purchase for the Powerball winner. The lower market cap valuation would leave plenty of leftover funds for other investments and smart savings to be had.
Skillz: Market Cap of $88.08 Million
Skillz markets itself as an online e-sports platform. However, this mobile-centric developer offers real-time competition for popular games like pool, solitaire, bingo, and other staples. It doesn’t necessarily translate to actual e-sports like you might think of with something like Overwatch, Counter-Strike, or League of Legends.
Skillz would be a more questionable purchase. It does have a lower market valuation, so a 50% stake wouldn’t cost that much in comparison to their take-home from the lottery. However, it is a small developer in a sea of other mobile developers with a far larger market presence.
Snail: Market Cap of $49.48 Million
Snail has a minimal market cap, at least when compared to the rest of the companies featured in this list. However, it is the publisher of the popular game ARK: Survival Evolved. ARK itself has a fanatical following, with numerous monthly players on multiple different platforms.
The company also has other options available like Survival Mercs. Any potential Powerball winner would have a cult classic studio on their hands when purchasing a controlling stake in Snail. Given the lower market valuation, there is plenty of room in that massive winnings to invest in other ventures and greatly diversify their financial standing.
The Powerball winner is likely not going to turn around and take a $500 million nest egg to invest in a number of video game companies. However, as a subject of speculation, it is interesting to see the actual market value of some of the largest names in the gaming space today.
They might not be as prestigious as more popular studios, but there is still plenty to be said about turning in a profit yearly while targeting gambling and casual players.
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