Breakingviews - Capital Calls: Polish gaming giant’s winter of woe

  • 2/9/2021
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SNOWBALLING. CD Projekt’s winter of discontent continues. The Polish developer of video game “Cyberpunk 2077” tweeted on Tuesday that it had been the victim of a cyberattack. The $7 billion company said that, to the best of its knowledge, the compromised systems did not contain players’ personal data. The shares still fell as much as 6%. CD Projekt’s market value tumbled by almost a third in December, after gamers discovered that “Cyberpunk” was riddled with bugs. But despite Tuesday’s fall, short-squeeze mania and promises from management to fix the game have lifted shares by almost 15% from January lows. The developer is now valued at 11 times next year’s revenue, according to forecasts compiled by Refinitiv and taking into account $150 million of net cash. U.S. rivals Electronic Arts and Take-Two Interactive Software trade on average at around 6 times. CD Projekt’s turnaround plan will need to come off without any more hitches to justify that. (By Oliver Taslic)

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