Rumours of major publishers trying to buy Valve, the gaming giant behind titles like Half-Life and Portal, are nothing new. With its lucrative Steam Store, the company has always seemed financially secure, making such acquisitions unlikely. However, whispers of a Microsoft offer have surfaced once again.
Steam’s Success Makes Valve a Tough Buy
Gaming personality Dior claims Microsoft is preparing a USD16 billion bid for Valve, presumably including the Steam Store, the dominant PC gaming platform. This move could benefit Microsoft by giving them a foothold in the handheld market with the Steam Deck and boosting their PC gaming revenue through Steam.
However, the logic seems shaky for Valve. Steam, estimated to generate over $10 billion annually, is a goldmine. The company itself is valued around USD8 billion, and co-founder Gabe Newell boasts a net worth exceeding USD4 billion. While net worth doesn’t equal immediate cash, it suggests the company isn’t strapped for cash.
The company’s private nature shrouds their finances in secrecy. The true value of Steam and their IPs like Counter-Strike and Half-Life remains unknown, and most gamers would likely scoff at a $16 billion price tag.
Dior, the rumour’s source, also claims Newell owns less than 25% of Valve, implying that’s the source of his wealth. Unless Newell desires retirement, a buyout, especially from Microsoft, seems improbable. However, Valve employees with stock options could potentially vote on a substantial offer.
Source: KitGuru
