Worlds Inc (WDDD)

[Tinkerer]

How Much Money Does WDDD Stand to Win?

Spanky and (Coolerheads) suggested the following information as a ballpark figure of how much money WDDD stands to win from ATVI (et al), and how that money will translate into share price. On a quiet day like today, I thought it might be good reading for any newcomers so that all may see the massive potential of WDDD and why so many of us are very heavily invested in WDDD at this point. It also shows why many of us have a long term investment strategy with WDDD. Patent litigation takes time, but making anywhere from 500% to 2000% in one year is worth the time!

ATVI Revenue Breakdown Estimate for Damages from ATVI suit
Modified from Coolerhead's suggestions. Plus adding list of future suits beyond Activision.

From this Investor Summery Sheet posted on ATVI website:
http://files.shareholder.com/downloads/ACTI/2435818763x0x634174/b65ae5ed-ce22-4042-a3be-8fdfd1e96547/01.10%20Q4%20Summary.pdf

Its easy to figure out North America Rev for 2010, 2011 & 2012.
Assuming US is 90% of NA Revenue we can estimate US Rev for those years.
Total US Revenue:
2010 - $2.17 B
2011 - $2.17 B
2012 - $2.2 B

Using this http://tippie.uiowa.edu/krause/spring2012/atvi_sp12.pdf
Activision research report for 2011 I can get the breakdown of % of Revenue for both COD and WOW. For 2011 it was 54% or $2.6 B of the total Revenue $4.76 B

So plugging WOW + COD Revenue is 54% into the 3 years above I get the revenue's Susman will be going after in our suit.

Total US COD + WOW Revenue:
2010 - $1.17 B
2011 - $1.17 B
2012 - $1.19 B

Now using 2%-4% for Running Royalty to determine past damages I get these for the 3 years

RR 2010 2011 2012
2% $23.4M $23.4M $23.8M
3% $35.1M $35.1M $35.7M
4% $46.8M $46.8M $47.6M

RR Total 2010 - 2012
2% $70.6M
3% $105.9M
4% $141.2M

Going back to 2006 (Due to limit of previous 6 years) I
reduce the Rev by 10% each year from the 2010 estimate above to get
RR 2006 2007 2008 2009
2% $15.4M $17.1M $19M $21.1M
3% $23.1M $25.7M $28.5M $31.6M
4% $30.8M $34.2M $38M $42.2M

Using same as 2012 going forward 6 (Kidrin stated 7 years left on patents back in 2012) additional years to 2018 I get
RR 5 years 2013-2018
2% $142.8M
3% $214.2M
4% $285.6M

Adding all years from 2006 - 2018 Total Rev
RR Total $
2% $286M
3% $429M
4% $572M

If we treble those we get triple the total for
RR Total Trebled
2% $858M
3% $1.29B
4% $1.72B

Remember this is only 54% of ATVI so total this out to the full Running totals for all MMORPG ATVI Rev I am using a safe # of 80%. 62% of 2011 Revenue was WOW + COD + Diablo 3 (Diablo 3 went to 5 players paying against each other which isn't the same as WOW or COD, but should fit into our patents IMO).

RR Total ATVI & Trebled
2% $1.27B
3% $1.91B
4% $2.54B

Now that is only 33% of the total Industry so assume only able to get 80% of the total
RR Total Industry
2% $3.08B
3% $4.62B
4% $6.16B

To get true final #'s you would have to back out taxes and legal fees but even if Worlds is only able to keep 40% of those totals it would give us a stock price (based on full 100M shares possible)
RR 40% of total going to WDDD
2% $1.23B or $12.30/sh cash
3% $1.85B or $18.50/sh cash
4% $2.46B or $24.60/sh cash

Other suits beyond Activision could include:

Disney
Electronic Arts
Facebook
Zynga
Take Two
Nintendo
Square Enix
Ubisoft
Sega
THQ
Namco Bandai
Konami
Google
Yahoo