Commodore sold yet again

$24 million Euro is a lot to pay for a trademark. The Commodore name, although recognizable, has not delivered a product in 10 years. Part of my job as a banker is evaluating things like this for financing. I've seen valuations like this before but for marks associated with an active, in-business company currently selling product. And even then, valuations like this are associated with top-level brands. If the business plan was to bring out a line of computers (retro or otherwise), then one could possibly justify the steep price for a "dead" (menaing not selling any product) name. The only thing the "Commodore" name has going for it at this point is the high recognition factor. I bet it's above 90% but only for certain age groups. Ask your average 15-year-old about it and the recognition level is probably below 20%. To pay $24mm to slap a "nostalgic" name on MP3 players is a losing proposition, as evidenced by the buying and selling of the name over the last few years. Just my $0.02. I love the Commodore brand -- it was the first machine I bought -- and it kills me that it get's traded the way it does. Rich Rich Rich Cini Collector of classic computers Build Master for the Altair32 Emulation Project Web site: http://highgate.comm.sfu.ca/~rcini/classiccmp/ /************************************************************/ -----Original Message----- From: cctalk-bounces(a)classiccmp.org [mailto:cctalk-bounces@classiccmp.org]On Behalf Of William Donzelli Sent: Wednesday, December 29, 2004 9:18 PM To: General Discussion: On-Topic and Off-Topic Posts Subject: Re: Commodore sold yet again Some of the kids that grew up playing with C64s make 24 million Euro a year. It is not just the retro crowd, but the whole generation. It is the name. Some names come back with incredible power (Packard-Bell anyone?). 24 mE might actually be cheap. Get into the mind of a marketting boob. Imagine coming out with a line of MP3 players or game machines, or whatever. Everytime you show a commercial or ad with the "new" Commodore, countless people, geeks or otherwise, will think of the happy memories of spending a couple of hours a day after high school playing games on you C64 (that's what I did, anyway). No pressures, mom isn't home, screw German homework, a stack of cookies, maybe a little Green Guy, and Racing Construction Set. Good memories leave a good impression, and the ad works. Now get out. How much does it cost to make a series of television commercials? They are just a different marketing tool. William Donzelli aw288(a)osfn.org