Commodore sold yet again

From: Richard A. Cini <>
Date: Wed Dec 29 21:20:30 2004

$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 Cini
Collector of classic computers
Build Master for the Altair32 Emulation Project
Web site:

-----Original Message-----
[]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

> Bah! The group that you refer to is not worth EU$24 million, plain and
> simple.

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.

> The Commodore brand name is meaningless in the greater
> marketplace at this point. Sure you've got a few thousand diehards that
> might buy a Commodore MP3 player as a novelty, but what does that net you?

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.

> It is when it's used to purchase dust.

How much does it cost to make a series of television commercials? They are
just a different marketing tool.

William Donzelli
Received on Wed Dec 29 2004 - 21:20:30 GMT

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