Games Workshop's business model, IP, and enthusiast community are examined in this episode, featuring Todd Wenning, President and CIO of K&A Capital. The discussion traces Games Workshop's origins from a Dungeons & Dragons distributor to the creator of the Warhammer universe, emphasizing its vertical integration from miniature production to publishing via the Black Library. The conversation highlights the company's network effects, driven by community engagement and events, and the potential for growth through licensing and the upcoming Warhammer TV series on Amazon Prime. The podcast also addresses the company's financial model, noting its high gross margins (around 70%) and a capital allocation strategy focused on returning cash to shareholders. Key risks discussed include maintaining relevance, managing pricing, and the potential impact of management transitions, particularly the eventual departure of CEO Kevin Roundtree.
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