11 ms·

Roblox raises $520M at $29.5B valuation

130 points by Impossible 6y ago

Larrikin 6y ago
Is there a good way to follow companies that have announced plans to IPO so that you can buy initial shares besides a Google alert?
- gamblor956 6y ago
  If you don't have a relationship with the IPO's underwriter, you're not buying IPO shares. You're buying shares from the people who bought IPO shares.
  - qeternity 6y ago
    This is absolutely untrue. Most legacy brokerages (Fidelity et al) will allow you to place orders for IPO shares. It's highly likely you won't get much and possibly none as the hot ones are often very oversubscribed, but it's very possible. Call your rep and ask.
- fossuser 6y ago
  They switched to a direct listing so you can just buy on the opening market.
- vasco 6y ago
  Here you go: https://sec.report/Form/S-1 https://sec.report/Form/S-1
- pembrook 6y ago
  My gut feeling after seeing this question on HN and watching how crazy robinhood users are getting over IPOs, makes me very scared for future returns. It seems we’re sufficiently far enough into the future that the the largest cohort of investors is too young to remember the late 90s. And this doesn’t have to end in a crash. Could just be a decade of lost returns going forward as we’ve pulled all the gains from the future into the present.
  - deleted 6y ago
    [deleted]
- mypalmike 6y ago
  The google search term here is "IPO calendar". Each exchange maintains lists, so it can help to add "nasdaq" or "nyse", etc.
contingencies 6y ago
https://www.crunchbase.com/organization/roblox/company_financials https://www.crunchbase.com/organization/roblox/company_finan...
shmerl 6y ago
And they still can't make it work on Linux, even in Wine.
- stretchcat 6y ago
  Incidentally, minecraft runs fine on Linux.
  - deleted 6y ago
    [deleted]
  - Triv888 6y ago
    but aren't they trying to retire the java version?
    - jjice 6y ago
      I'm not a very regular player, but from what I understand, the Java version is the most popular by the "enthusiast" community. At least the people I know that are very into the game still use Java for modding purposes and more extensive server options (also because of mods).
      - robotnikman 6y ago
        Yep, if you run a Minecraft server you are most likely using the Java version with a wrapper such as Spigot (or one of its forks)
    - stretchcat 6y ago
      Hard to say for sure without being inside the org, but from the outside that doesn't really seem to be the case to me. Most gameplay features appear first in snapshot releases of Java edition.
- homarp 6y ago
  progress is being made though: https://github.com/roblox-linux-wrapper/roblox-linux-wrapper/issues/187 https://github.com/roblox-linux-wrapper/roblox-linux-wrapper... Thanks to Proton work, VMProtect hurdle has been passed and the new issue is in regards to the challenge packets that the game sends at start.
kevindeasis 6y ago
People everywhere on the internet are going crazy about Roblox IPO. I initially thought about gambling a small amount of money with Roblox when they go public. But I start to question if it would be even wise for me to put money in Roblox. It just feels its too good to be true as everyone mentions that they're gonna buy the stock. What do you folks' think?
- baby 6y ago
  What’s the long term game here? I don’t see it. On the other hand Minecraft keeps on giving, they’re shipping on more platforms, they’re creating swag, Other games, series, etc. I’m pretty sure we’ll see some theme park based on Minecraft at some point. So here’s that. Maybe roblox is on the same path.
  - djaychela 6y ago
    Roblox is incredible in some ways. I have 4 step-kids, and during the first UK lockdown, 3 of them played regularly in roblox with me (I don't live with them, and didn't see them for 3 months). Some of the games are immense - full on theme parks, weird physics games, movie tie-ins, "total wipeout" physical games, all sorts. There was a really accurate Natural History museum at one point. It's so incredibly diverse, that it's hard to get a real handle on it unless you play it. It seems to have got real traction with some of the kids in terms of the effort they put into programming their games, and hopefully it'll be a gateway to programming for some of them. I think kids spend too much time playing games, but Roblox is pretty good, and they even make an effort to censor the chat - which can never be 100% but it's better than a lot of places. FTR I've played minecraft with them a lot too, but the issue is that ends up being a fighting game ones the boys' hormones kick in (sadly!)
  - vidarh 6y ago
    Roblox is a platform and an exchange. While Minecraft has sort-of become a platform too, with people doing custom servers etc., Roblox is explicitly built to facilitate being a middleman skimming percentages of people buying and selling digital assets and game passes. The marketplace added to the Bedrock edition of Minecraft is a baby step in that direction, but nowhere near as flexible.
bufferoverflow 6y ago
And Boston Dynamics just sold for only $1B. Something is not right.
- timdaub 6y ago
  So basically you're saying that a robotics company that periodically ships impressive robot demos should be worth more than a weird video game for kids? IMO while I tend to agree that achieving what Boston Dynamics did is surely the bigger engineering achievement, that doesn't say much in the company's position in the market. Also here's a more positive narrative: Why not celebrate that online kids games are now evaluated more than military technology!
  - newswasboring 6y ago
    >Why not celebrate that online kids games are now evaluated more than military technology! I am not sure I get your point here. First, boston dynamics is not only for military technology, sure its initial and I think a lot of current funding comes from defense stuff but so did the Internet and early web technology's funding. So if we ignore that spin, the narrative is that online kids game is being valued more than advances in robotics. Now that does not sound positive in many ways.
    - emteycz 6y ago
      Boston Dynamics is not a proxy for advances in robotics. It's a company on the market, and it doesn't have much business. Academic research continues to be valued and thus funded.
      - newswasboring 6y ago
        >Academic research continues to be valued and thus funded. Is it though? Do you have a source for that? Now I understand its hard to actually calculate how much funding is going to which field, after all Robotics is an interdisciplinary field if there ever was one. Last year the AI budget in US was around 1Billion and another half billion or so for quantum computing. Those numbers are so small its astounding considering a kids game is valued at 29.5 billion american dollars. edit: Source for numbers https://syncedreview.com/2020/08/22/trump-slashes-research-funding-but-raises-the-us-federal-ai-budget-by-34-percent/ https://syncedreview.com/2020/08/22/trump-slashes-research-f...
impulser_ 6y ago
That's more than the value of Take-Two, and nearly the value of EA. Take-Two's Q revenue is nearly 4x Roblox.
- adamnemecek 6y ago
  The big diff is that roblox is a platform and has more room to grow.
deleted 6y ago
[deleted]
isthisreality 6y ago
At this point, Roblox has to be a money laundering operation.
sjg007 6y ago
Why can’t they IPO... I want in.
tomatotomato37 6y ago
Wait I'm confused. When did roblox turn from a janky lego clone from the neopets era into something worth 11 figures? Do they have some sort of massive international userbase or hit mobile app I'm not aware of? That's nearly half that of Blizzard of WoW fame.
- dharmab 6y ago
  Roblox is an extremely robust modding platform and they allow modders to make money. There are entire commercial studios who build games withn Roblox.
- softwaredoug 6y ago
  Every kid I know plays Roblox. It’s probably more popular then Minecraft in the 14 and under crowd.
- nolroz 6y ago
  Over half of us kids are playing it. There are millions of user created games and worlds.
  - beckingz 6y ago
    But why? It was a fine game when I last played it 10 years. What have they added that make it so good?
    - specialist 6y ago
      My older nephew plays FortNite, the younger plays Roblox. Best as I can tell, they're social hubs, serving the same function as the MUDs my generation (dial-up BBS) played. The actual gaming parts are just the backdrop, like nightclub themes (jazz, EDM, rock). A buddy of mine cofounded FlowPlay. Surprisingly popular, but nothing like Roblox. Pretty much same idea. Users keep going back to hang out with their friends. I've read that Roblox also has a thriving eco system of third party developers. Something that MineCraft, SecondLife, and other 3D/VR MUDs/MMORPGs didn't quite crack. So Roblox gets that sweet flywheel effect. Like an in-game Steam (app) store. Since my nephews cannot and will not use lame adult phones or chat apps, I installed both Roblox and FortNite, their preferred chat clients. I've never actually played any of the content.
ausbah 6y ago
are they not profitable after 10+ years? why are they still raising money?
ArtWomb 6y ago
Congrats Roblox! Now start paying kids to make your games, set up a USD/RBX free exchange, and watch that valuation skyrocket even further ;)
- HomeDeLaPot 6y ago
  They paid community game creators over $100 million last year: https://corp.roblox.com/2019/08/roblox-developers-set-earn-100-million-2019/ https://corp.roblox.com/2019/08/roblox-developers-set-earn-1...
- Jowsey 6y ago
  Not sure if this was sarcasm but that's almost exactly what they do and have been doing for years
navium 6y ago
Just thought of downloading the game to understand what all this valuation is about, but the reviews in the iOS App Store are so so fake, it stopped me right there from installing it.
- everybodyknows 6y ago
  Fake -- or merely the usual clueless fankids?
- jackson1442 6y ago
  Reviews for this app will definitely be kinda weird... it's all UGC targeted at children so a lot of reviews will be written by children, probably about the games on there (even though there are technically infinitely many game possibilities- anyone can make one). Definitely an interesting platform, for sure.
- Jowsey 6y ago
  Roblox's main demographic is children. Most of the reviews will be from people who are still quite new to proper writing, cut them some slack haha
deleted 6y ago
[deleted]

130 points by Impossible 6y ago

Is there a good way to follow companies that have announced plans to IPO so that you can buy initial shares besides a Google alert?

gamblor956 6y ago
If you don't have a relationship with the IPO's underwriter, you're not buying IPO shares. You're buying shares from the people who bought IPO shares.
- qeternity 6y ago
  This is absolutely untrue. Most legacy brokerages (Fidelity et al) will allow you to place orders for IPO shares. It's highly likely you won't get much and possibly none as the hot ones are often very oversubscribed, but it's very possible. Call your rep and ask.
fossuser 6y ago
They switched to a direct listing so you can just buy on the opening market.
vasco 6y ago
Here you go: https://sec.report/Form/S-1 https://sec.report/Form/S-1
pembrook 6y ago
My gut feeling after seeing this question on HN and watching how crazy robinhood users are getting over IPOs, makes me very scared for future returns. It seems we’re sufficiently far enough into the future that the the largest cohort of investors is too young to remember the late 90s. And this doesn’t have to end in a crash. Could just be a decade of lost returns going forward as we’ve pulled all the gains from the future into the present.
- deleted 6y ago
  [deleted]
mypalmike 6y ago
The google search term here is "IPO calendar". Each exchange maintains lists, so it can help to add "nasdaq" or "nyse", etc.

contingencies 6y ago

https://www.crunchbase.com/organization/roblox/company_financials https://www.crunchbase.com/organization/roblox/company_finan...

shmerl 6y ago

And they still can't make it work on Linux, even in Wine.

stretchcat 6y ago
Incidentally, minecraft runs fine on Linux.
- deleted 6y ago
  [deleted]
- Triv888 6y ago
  but aren't they trying to retire the java version?
  - jjice 6y ago
    I'm not a very regular player, but from what I understand, the Java version is the most popular by the "enthusiast" community. At least the people I know that are very into the game still use Java for modding purposes and more extensive server options (also because of mods).
    - robotnikman 6y ago
      Yep, if you run a Minecraft server you are most likely using the Java version with a wrapper such as Spigot (or one of its forks)
  - stretchcat 6y ago
    Hard to say for sure without being inside the org, but from the outside that doesn't really seem to be the case to me. Most gameplay features appear first in snapshot releases of Java edition.
homarp 6y ago
progress is being made though: https://github.com/roblox-linux-wrapper/roblox-linux-wrapper/issues/187 https://github.com/roblox-linux-wrapper/roblox-linux-wrapper... Thanks to Proton work, VMProtect hurdle has been passed and the new issue is in regards to the challenge packets that the game sends at start.

kevindeasis 6y ago

People everywhere on the internet are going crazy about Roblox IPO. I initially thought about gambling a small amount of money with Roblox when they go public. But I start to question if it would be even wise for me to put money in Roblox. It just feels its too good to be true as everyone mentions that they're gonna buy the stock. What do you folks' think?

baby 6y ago
What’s the long term game here? I don’t see it. On the other hand Minecraft keeps on giving, they’re shipping on more platforms, they’re creating swag, Other games, series, etc. I’m pretty sure we’ll see some theme park based on Minecraft at some point. So here’s that. Maybe roblox is on the same path.
- djaychela 6y ago
  Roblox is incredible in some ways. I have 4 step-kids, and during the first UK lockdown, 3 of them played regularly in roblox with me (I don't live with them, and didn't see them for 3 months). Some of the games are immense - full on theme parks, weird physics games, movie tie-ins, "total wipeout" physical games, all sorts. There was a really accurate Natural History museum at one point. It's so incredibly diverse, that it's hard to get a real handle on it unless you play it. It seems to have got real traction with some of the kids in terms of the effort they put into programming their games, and hopefully it'll be a gateway to programming for some of them. I think kids spend too much time playing games, but Roblox is pretty good, and they even make an effort to censor the chat - which can never be 100% but it's better than a lot of places. FTR I've played minecraft with them a lot too, but the issue is that ends up being a fighting game ones the boys' hormones kick in (sadly!)
- vidarh 6y ago
  Roblox is a platform and an exchange. While Minecraft has sort-of become a platform too, with people doing custom servers etc., Roblox is explicitly built to facilitate being a middleman skimming percentages of people buying and selling digital assets and game passes. The marketplace added to the Bedrock edition of Minecraft is a baby step in that direction, but nowhere near as flexible.

bufferoverflow 6y ago

And Boston Dynamics just sold for only $1B. Something is not right.

timdaub 6y ago
So basically you're saying that a robotics company that periodically ships impressive robot demos should be worth more than a weird video game for kids? IMO while I tend to agree that achieving what Boston Dynamics did is surely the bigger engineering achievement, that doesn't say much in the company's position in the market. Also here's a more positive narrative: Why not celebrate that online kids games are now evaluated more than military technology!
- newswasboring 6y ago
  >Why not celebrate that online kids games are now evaluated more than military technology! I am not sure I get your point here. First, boston dynamics is not only for military technology, sure its initial and I think a lot of current funding comes from defense stuff but so did the Internet and early web technology's funding. So if we ignore that spin, the narrative is that online kids game is being valued more than advances in robotics. Now that does not sound positive in many ways.
  - emteycz 6y ago
    Boston Dynamics is not a proxy for advances in robotics. It's a company on the market, and it doesn't have much business. Academic research continues to be valued and thus funded.
    - newswasboring 6y ago
      >Academic research continues to be valued and thus funded. Is it though? Do you have a source for that? Now I understand its hard to actually calculate how much funding is going to which field, after all Robotics is an interdisciplinary field if there ever was one. Last year the AI budget in US was around 1Billion and another half billion or so for quantum computing. Those numbers are so small its astounding considering a kids game is valued at 29.5 billion american dollars. edit: Source for numbers https://syncedreview.com/2020/08/22/trump-slashes-research-funding-but-raises-the-us-federal-ai-budget-by-34-percent/ https://syncedreview.com/2020/08/22/trump-slashes-research-f...

impulser_ 6y ago

That's more than the value of Take-Two, and nearly the value of EA. Take-Two's Q revenue is nearly 4x Roblox.

adamnemecek 6y ago
The big diff is that roblox is a platform and has more room to grow.

deleted 6y ago

[deleted]

isthisreality 6y ago

At this point, Roblox has to be a money laundering operation.

sjg007 6y ago

Why can’t they IPO... I want in.

tomatotomato37 6y ago

Wait I'm confused. When did roblox turn from a janky lego clone from the neopets era into something worth 11 figures? Do they have some sort of massive international userbase or hit mobile app I'm not aware of? That's nearly half that of Blizzard of WoW fame.

dharmab 6y ago
Roblox is an extremely robust modding platform and they allow modders to make money. There are entire commercial studios who build games withn Roblox.
softwaredoug 6y ago
Every kid I know plays Roblox. It’s probably more popular then Minecraft in the 14 and under crowd.
nolroz 6y ago
Over half of us kids are playing it. There are millions of user created games and worlds.
- beckingz 6y ago
  But why? It was a fine game when I last played it 10 years. What have they added that make it so good?
  - specialist 6y ago
    My older nephew plays FortNite, the younger plays Roblox. Best as I can tell, they're social hubs, serving the same function as the MUDs my generation (dial-up BBS) played. The actual gaming parts are just the backdrop, like nightclub themes (jazz, EDM, rock). A buddy of mine cofounded FlowPlay. Surprisingly popular, but nothing like Roblox. Pretty much same idea. Users keep going back to hang out with their friends. I've read that Roblox also has a thriving eco system of third party developers. Something that MineCraft, SecondLife, and other 3D/VR MUDs/MMORPGs didn't quite crack. So Roblox gets that sweet flywheel effect. Like an in-game Steam (app) store. Since my nephews cannot and will not use lame adult phones or chat apps, I installed both Roblox and FortNite, their preferred chat clients. I've never actually played any of the content.

ausbah 6y ago

are they not profitable after 10+ years? why are they still raising money?

ArtWomb 6y ago

Congrats Roblox! Now start paying kids to make your games, set up a USD/RBX free exchange, and watch that valuation skyrocket even further ;)

HomeDeLaPot 6y ago
They paid community game creators over $100 million last year: https://corp.roblox.com/2019/08/roblox-developers-set-earn-100-million-2019/ https://corp.roblox.com/2019/08/roblox-developers-set-earn-1...
Jowsey 6y ago
Not sure if this was sarcasm but that's almost exactly what they do and have been doing for years

navium 6y ago

Just thought of downloading the game to understand what all this valuation is about, but the reviews in the iOS App Store are so so fake, it stopped me right there from installing it.

everybodyknows 6y ago
Fake -- or merely the usual clueless fankids?
jackson1442 6y ago
Reviews for this app will definitely be kinda weird... it's all UGC targeted at children so a lot of reviews will be written by children, probably about the games on there (even though there are technically infinitely many game possibilities- anyone can make one). Definitely an interesting platform, for sure.
Jowsey 6y ago
Roblox's main demographic is children. Most of the reviews will be from people who are still quite new to proper writing, cut them some slack haha

deleted 6y ago

[deleted]