Lloyd Melnick

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I am CEO of fiveonenine games, the social gaming joint venture owned by Capitol Broadcasting and The E.W. Scripps Company.

10 responses to A couple countries to avoid

  1. 

    Hi. we didnt see for long time.
    But tell your view for poland. i think its good market for game companies. stock market give money for many companies ,my too. im also starting now social….so i will read your blog

  2. 

    Good to hear from you, Kris. Not meaning to take away the suspense, but next week I will be discussing why Poland is one of three countries to prioritize.

  3. 

    I’m no pro-Argentine government, however there must be a mention here. Repsol’s problem started because we (Argentine people) had to import 100% of Oil derivates because YPF was sending the product outside Argentina. Also, for every dollar they had in stocks, they had 2 of debt. So, once YPF was re-statized they had big numbers in red… so even if they asked for an amount of money, the debt was even bigger than that. In other words, they didn’t lost their investment but got a big debt with Argentina. In order to stop losing money from that company, Argentine government chose to take over it, and take in charge of the debt. So, take in consideration that too, it wasn’t a just because the government wanted it… but because of the huge debt it had with Argentina.

    • 

      If you look at how the international community and courts have reacted to the situation, their analysis is somewhat different. You can always rationalize a nationalization. The point of my post is your government is much more likely to do that than those in some of the markets I think are more promising right now for social game companies, including some of your neighbors.

  4. 

    I hate my country ever day a little more.

    • 

      I actually love your country and you should not take my article as a reason not to. I have worked with many Argentines and they are wonderful and smart people. Your country also has a very rich and interesting culture. I disagree strongly with your government and think it is following disastrous policies, which is actually sadder given how great your country is.

  5. 

    Hi!, i’m from Argentina and i think that your opinion about this country is shallow and based in who know what kind of information or what kind of interests. I’m not an economy expert, but you should know that an oil company is not a game company, the predatory policies taken by repsol while it was in internacional hands( Spain and other countries), caused stockouts and overpricing in the the oil, the policies of repsol had a negative impact in all the economy of Argentina ( without mentioning the lack of investment and defaults on contracts by repsol ). What i’m trying to mean with that is the fact that a game company can’t ever causes this kind of actions ( nationalization ), a national oil company is an strategic tool for the economy of any country in the world, a game company is not, i don’t understand how you can compare an oil company with a game company, even if you want to call the action taken whith repsol “populism”, do you really think that the people will be happy in the case this goverment arbitrarily decide to nationalize a game company?, what can a national game company can change in the life of the citizen of a country?…

    • 

      Thanks, Esteban. I appreciate your opinion but disagree. I have a deep background in economics (an undergraduate degree in Political Economy from Johns Hopkins and completed the coursework for a Masters of Economics under Nobel Prize winner James Buchanan) and the policies that Fernandez is pursuing creates a hostile business environment for any foreign company, including game companies. You can argue that the oil industry is different than the game industry, and it is, but the underlying issues are the same. Who is to say that if we invested in an Argentine company that became the next Zynga (with comparable revenue) it would not be considered a national asset and similar policies would then be pursued to keep the profits in the country. Moreover, from the outside, most are looking at the broader policies of the Buenos Aires regime and feel it will lead to awful economic conditions (see Economist article on the effects of the nationalization). But the bottom line is yes, I think that a case could be made to nationalize a game company if it brings in enough money in the short-term to make people happy and a successful social game company does.

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  1. And the markets where I am optimistic | The Business of Social Games - September 5, 2012

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