Club Penguin is worth $450 million?!?

Justin
Having a grandson just like your 7-year-old Curious Capitalist Jr, I too am puzzeled by the implicit cash generating capabilities of Club Penguin. As a rule of thumb, a price of $450 million can be supported by a net cashflow of $40 million per year. This means each of the roughly 23 million US kids ages 7 to 11 would have to do something that generates $2 per year for Club Penguin. If only 10 percent of those kids are engaged, it is only $20 per year. Now if it is only one percent of the kids, the required $200 per year becomes more formidable. Less than that will not provide proper amortization capabilities or profits (or something strange is going on. Of course I seem to have been wrong about this for quite a few years now, but I suspect that that may be changing.)
We are awash in cash in this country and banks and financial advisors are taking many risks that may not be prudent, but do inflate salaries.
But I don't think it is creepy. Dangerous maybe, but not creepy.