What's Going on at EG7?

[SavinDwarf]

Does anyone have any insight?

UPDATE 9/9/2021

We may all get some answers on September 9, 2021. This is when the new acting CEO of EG7, Ji Ham, will lead a video presentation

https://www.enadglobal7.com/press/9BA5B374E990A5B6/

The actual presentation (once it starts on September 9, 2021 at 8:00 am CEST (Sweden Time)) can be accessed at https://www.youtube.com/watch?v=R9sMvpZWybc

UPDATE September 7, 2021

From Acting CEO Ji Ham: https://www.enadglobal7.com/press/FE055CAF424A06E4/
-- This one is focused on a change in management strategy; my GUESS is that most of the previous management team is gone. HOWEVER, many of them may ream in their position as head of a Division.

UPDATE 9/9/2021

My summary of Video Presentation from 9/9/2021: - overall its good news for LOTRO (or as good as we could have hoped for)

1. Ji Ham is a little dry but appears to be a very professional and experienced senior executive.
2. From a financial/share price perspective Ji Ham explained the primary reasons for the change in management, without actually admitting to any wrong doing on the part of EG7 – very well done.
3. Why was Daybreak excited to become part of EG7? Because it would be a source of additional capital to invest in their powerful suite of games.
4. What does it mean for LOTRO. He in particular said that EG7 would be investing in DC World and LOTRO over the next 18 months to leverage the value of those two brands. He discussed the upcoming Amazon TV show as a driver.

Overall, I think the presentation was a good thing for LOTRO, but you can watch it and form your own opinion. Its just words, but he did not need to keep mentioning DC World and LOTRO, but he did. For the financial minded among you it explains the reason for the change.

From SSG staff’s point of view, I’m sure they are a little bit relieved, and perhaps a little hopeful.

That’s my take.

link to presentation https://www.youtube.com/watch?v=R9sMvpZWybc

[Harvain]

Does anyone have any insight?

Do you mean that the CEO of EG7 was transitioned out and the CEO of Daybreak Game Company is now Acting CEO for EG7 while they search for a new permanent CEO?

Link: https://www.enadglobal7.com/press/7DE6ED04ED2D41BC/



If this is not what you mean about EG7 you'd have to be far more specific and provide some context.

[SavinDwarf]

Do you mean that the CEO of EG7 was transitioned out and the CEO of Daybreak Game Company is now Acting CEO for EG7 while they search for a new permanent CEO?

Link: https://www.enadglobal7.com/press/7DE6ED04ED2D41BC/



If this is not what you mean about EG7 you'd have to be far more specific and provide some context.

That's part of it. But there are a lot of other things. Two new board members. Some major stock holders sold a lot of shares. Notice that Ji Ham is only temporary, which suggests that the move to change CEOs was a little rapid. .... and a bunch of other things.

it started on May 26 with this quiet announcement:
https://www.enadglobal7.com/press/D5FE41D8C56EB4AD/

[Harvain]

That's part of it. But there are a lot of other things. Two new board members. Some major stock holders sold a lot of shares. Notice that Ji Ham is only temporary, which suggests that the move to change CEOs was a little rapid. .... and a bunch of other things.

it started on May 26 with this quiet announcement:
https://www.enadglobal7.com/press/D5FE41D8C56EB4AD/

I don't think its anything to worry about as at the end of the day the LOTRO Community along with the various other Gaming Communities that currently are under the overall EG7 umbrella cannot do anything to affect such. Nothing seems to indicate any form of drastic changes that will have a huge negative affect on Daybreak & SSG + LOTRO & DDO.

The move to change EG7's CEO doesn't seem too crazy, the old one still is being held on for 6 months to help with the transition as the new temporary CEO from Daybreak Ji Ham is in charge while they search for a permanent CEO. Personally how things wrap up at end of 2021 and how 2022 starts will show more if various changes behind the scenes and known about EG7 and those under their umbrella will be affecting things in a negative way for say LOTRO.

[JH15547]

That's part of it. But there are a lot of other things. Two new board members. Some major stock holders sold a lot of shares. Notice that Ji Ham is only temporary, which suggests that the move to change CEOs was a little rapid. .... and a bunch of other things.

it started on May 26 with this quiet announcement:
https://www.enadglobal7.com/press/D5FE41D8C56EB4AD/

Read the Swedish press ...
“The news that Robin Flodin is leaving the CEO position came after an interview with Dagens Industri on Thursday , in which Robin Flodin has difficulty answering questions about the difference between total revenues and net sales”

https://www.breakit.se/artikel/29933...d-robin-flodin

[Harvain]

Read the Swedish press ...
“The news that Robin Flodin is leaving the CEO position came after an interview with Dagens Industri on Thursday , in which Robin Flodin has difficulty answering questions about the difference between total revenues and net sales”

https://www.breakit.se/artikel/29933...d-robin-flodin

Yeah, there is not enough information to know why, it could be that the current CEO has personal issues or various other reasons for why they are no longer acting CEO for EG7. They were still held on so it doesn't sound like its a huge problem. As I put in an above post, we won't know what kind of effects this and other things that happened in 2021 both known and behind the scenes will have until more time passes.

There is nothing honestly truly alarming that implies that EG7 and all those under it's umbrella will be affected negatively going into the end of 2021 and start of 2022.

[istvana]

The only thing that concerned me was the Daybreak CEO taking over the parent company at least temporarily. Nothing at all against him personally but I thought that things were moving in the right directions (from a player's perspective) since Daybreak was purchased and if their CEO is running the parent it is less likely to require changes in traditional Daybreak attitudes.

[Harvain]

The only thing that concerned me was the Daybreak CEO taking over the parent company at least temporarily. Nothing at all against him personally but I thought that things were moving in the right directions (from a player's perspective) since Daybreak was purchased and if their CEO is running the parent it is less likely to require changes in traditional Daybreak attitudes.

Not really a reason to worry. What SSG does has far more immediate and lasting impacts on LOTRO than Daybreak or EG7 on such as they can only real do trickle down effects for the vast majority of things they do.

Heading into the Gundabad Expansion/Update 31/End of 2021 LOTRO and SSG are trending positively even if both are encountering road bumps and have their own mountains to climb to keep improving so it will be interesting what LOTRO & SSG look like when the Gundabad Expansion/Update 31 drops, new Employees for SSG in various positions start having an impact on things (Customer Service have some more people for an example) and then the end of 2021 and how things are looking like when 2022 starts.

[Arantha]

Thanks for this interesting informations. Perhaps there are other reasons why Flodin is leaving we don't know.

[TearMaker]

The article states he is staying for 6 months in an advisory role - which doesn't sound that rapid to me.

That is of course usually the way that they can also stop any bonus payments that CEOs tend to get regardless of whether they perform or not personally and so they may be making him stay around and quiet whilst they line up all their ducks and then he gets his bonus.
It is also a way to stop CEOs of taking their inside knowledge to a competitor or starting up another business in direct competition.

All seems very standard in this role and we just need to keep an eye on the market value as an indicator of the markets confidence.

As stated, nothing we can do but thanks to OP for making us aware

[Arantha]

There are several reasons possible for that quick change. To Lotro I don't think something will change, especially when Ham is temporarly CEO.

I created a german version of this news: https://funkenflug.ag/sofortiger-rue...lodin-bei-eg7/

[istvana]

I think the great majority of us will agree that communications have been more than a little better since the EG7 purchase, there has been more emphasis on changing the game's basic monetization policies (granted with timing uncertain), there has been more firmness in moving to change the LI system and there has been discussion of possible even wider ranging changes such as a graphics improvement.

If these are things that Daybreak welcomes, having their leader take over temporarily should have no negative impact.

If these are things they are doing only because they were ordered to do them, the result may be otherwise.

I am cautiously optimistic for more than a few reasons that this change should not be harmful to LOTRO. It may well be positive as someone closer to the game gets wider influence at the parent company.

[Altair6]

All seems very standard in this role and we just need to keep an eye on the market value as an indicator of the markets confidence.

As stated, nothing we can do but thanks to OP for making us aware

Well, if you translate (Google seemed to do a good job) the Swedish article linked above, it seems share prices have taken a tumble recently. Which may explain the change.

[SavinDwarf]

Well, if you translate (Google seemed to do a good job) the Swedish article linked above, it seems share prices have taken a tumble recently. Which may explain the change.

One of the reasons for the share price tumble has been shares being sold by two key people (Flodin and the Chairman of the board) - they started doing this early in the year (quietly).. but then they made this press announcement:

https://www.enadglobal7.com/press/7B92729D3B8C66C1/ in June

But I assume he is released from this agreement with the recent appointment of a new acting CEO:

ADD - Between August 26 and August 31 (4 working days) -- almost 20% of the companies shares have been sold. I have no info on who yet (they have 7 days to report in Sweden I think) -- but I bet its Flodin and the rest of the management team and maybe the chairman of the board.

NOTE: Ji Ham was not on the EG7 management team until being appoint interim CEO. https://www.enadglobal7.com/management/ - he owns a little over 1% of the EG7 stock.

[Braer]

Well, if you translate (Google seemed to do a good job) the Swedish article linked above, it seems share prices have taken a tumble recently. Which may explain the change.

A high of 12 EUR per share the month they bought Daybreak followed by a steady plummet to 4.2 EUR of late.

How much have the members of the board and their holdings changed over this period I wonder. Hype might have inflated that high and induced some profit taking.

Get prepared to spend, spend, spend to show your devotion and get the graph rising, maybe?

[SavinDwarf]

Its beginning to look like we might be seeing a total replacement of the senior management - the latest news is:

https://news.cision.com/enad-global-...f-eg7,c3406433

[Aurora7]

EG7 takes over and communications with SSG greatly increases over the ensuing months.
A new producer is hired, and the mythical ILI revamp approaches.


Now, Daybreak (Ji Ham) will be CEO?


"I have a really bad feeling about this."

Aurora7

[warllock]

Discovering the disease through its symptoms.

Analyzing a company and the CEO can be a difficult task. I prefer to look at the market and the response that the company / CEO offers consumers.

The idea of hierarchy cannot be ignored, larger companies and commanding smaller companies.
It's easy to see the weight that the Business Model has on Game Design.

It was like that with the purchase of SSG by Daybreaker, a company known as abusive in its games (Grinding, excessive Farme, lootboox, Power creep, purposely obsolete design, lack of communication, Freemium monetization model).

The chances of the EG7 having a new ZINGA (farmeville, facebook games), Steam games (dead hands on slot machines) and Gaming (RIFT, Trove, Aura kingdom, Fiesta online, Grand Fantasy, Last chaos . Shaiya , etc ) is big.
EG7 Buying big franchises can be a sign of hope for the western market, older franchises and their customers or simply a world-scale slot machine.

I expect better conditions for free-to-plays, premiums and vips, I wish improvements for the causal, midcore and hardcore communities I wish quality for the abandoned game modes (skirmish, pvp, raids, vitudes, legendary, mounts, quest pack, expansions ), but being realistic, I don't see that. Consumers are used to half-finished products, misinformation and abusive monetization.

Note: Regardless of the sanitary condition of the park, there have always been Kraken, lifeboats, dolphins and visitors.

------------------- PT/BR
Descobrindo a doença pelo sintomas.

Analisar uma empresa e o CEO pode ser uma tarefa difícil. Prefiro olhar o mercado e a resposta que a empresa / Ceo oferecem aos consumidores.
A ideia de hierarquia não pode ser ignorada, empresas maiores e comandando empresas menores. E fácil ver o peso que o Modelo de negócio causa no Desing do jogo .

Foi assim com compra da SSG pela Daybreaker , empresa conhecida como abusiva emseus jogos (Grinding , Farme excessivo, lootboox,Power creep, desing obsolete de propósito, falta de comunicação, modelo Freemium de monetização).

As chances da EG7termos uma nova ZINGA(farmeville ,games facebook), Steam games ( mmos-mortos caça niqueis) e Gamingo (RIFT, Trove, Aura kingdom, Fiesta online, Grand Fantasy,Last chaos . Shaiya , etc ) e grande.
EG7 Comprando grandes franquias pode ser um sinal de esperança para o mercado ocidental ,franquias antigas e seus consumidores ou simplesmente ser uma caça niqueis em escala mundial.

Espero melhores condições para os free-to-plays , premiuns e vips , desejo melhoras para as comunidades causal, midcore e hardcore Desejo qualidade para os modos de jogos abandonados( skirmish, pvp, raids, vitudes,lendárias , montarias, quest pack, expansoes ), mas sendo realista, não vejo isso acontendo. Os consumidores estao acostumados com produtos pela metade ,desinformação e monetização abusiva.


Obs: Independente da condição sanitária do parque sempre existiram Kraken, baleiras, golfinhos e visitantes.

[Arantha]

Its beginning to look like we might be seeing a total replacement of the senior management - the latest news is:

https://news.cision.com/enad-global-...f-eg7,c3406433

This is not in the latest, Flodin and another board member was not elected on May, now they found two new board members. I don't think, that this has something to do with the replacement of Flodin.

[SavinDwarf]

This is not in the latest, Flodin and another board member was not elected on May, now they found two new board members. I don't think, that this has something to do with the replacement of Flodin.

The action in May was not that atypical, especially given the fact that Flodin was selling large amounts of shares. The action by the board to put a limit on the % of shares that Flodin could sell in the next 12 months was a good way to ensure market confidence.

The latest moves (in the last 10 days) are something else entirely. Based entirely on speculation (and a lot of experience in mergers/divestments/acquisitions) I would say there are two strong potential reasons:

1) EG7 actions have alarmed the Swedish Stock Exchange and the board has taken action to appease them (actions could be in the reporting, press announcements, stating untruths, etc.). New CEO and new CFO. Note that new CFO was appointed by the board and has no relationship with Ji Ham (that I can find). OR

2) There is a power struggle within the major investors and the winners have forced out Flodin and perhaps others. If this is true you can expect a major set of changes in the EG7 management team.

[SavinDwarf]

We may all get some answers on September 9, 2021. This is when the new acting CEO of EG7, Ji Ham, will lead a video presentation

https://www.enadglobal7.com/press/9BA5B374E990A5B6/

The actual presentation (once it starts on September 9, 2021) can be accessed at https://www.youtube.com/watch?v=R9sMvpZWybc

[Braer]

We may all get some answers on September 9, 2021. This is when the new acting CEO of EG7, Ji Ham, will lead a video presentation

https://www.enadglobal7.com/press/9BA5B374E990A5B6/

The actual presentation (once it starts on September 9, 2021) can be accessed at https://www.youtube.com/watch?v=R9sMvpZWybc

I bet he's not going to lead with how many player accounts SSG has banned over the last few months. Only reason it's not more is the unreportable accounts ironically

[Harvain]

I bet he's not going to lead with how many player accounts SSG has banned over the last few months. Only reason it's not more is the unreportable accounts ironically

What? lol

[SingularityNow]

EG7, when I first was introduced to it through the Daybreak acquisition sounded like vaporware to me. These latest events have not disabused me from that notion.

[Arantha]

why?