[rchaud]

> Bungie, who were acquired by Sony at a $3.6B valuation in February, seem like a reasonable comparison; not too far off Yuga’s $4B valuation from their raise in March.

This kind of thinking is a problem, especially when the basis for the article is drawing equivalence between the valuation of a longstanding games company, vs. a fly-by-night lifestyle brand that is now dipping its toes into games and movies.

Bungie's valuation is based on the intrinsic value of its assets and the potential cash flow from creating franchises from its IP which goes back 20 years and is supported by hundreds of millions of cumulative unit sales to end-users. Sony would also have done significant due diligence around their financials, skeletons in closets, and other things.

Yuga's 'valuation' is based on whatever private investors paid for a slice of its equity, hoping that they'll 10X it when the company goes public. The intrinsic value seems to come down to whether they can find a bigger fool to dump their holdings on. Remember that WeWork went from being "valued at $50bn" by insiders, to less than $10bn when they submitted their laughable S-1 for public scrutiny.

I mention WeWork because A16Z, the VC fund that led the Yuga raise, also handed WeWork charlatan Adam Neumann $70m for some blockchain project:

https://techcrunch.com/2022/05/24/flowcarbon-wework-adam-neu...