It's a lot like real estate. The politics of real estate are much the same. Open a strip mall, fill it up with local shops and anybody you can grab. Wait for it to fill up and then jack rates up... "Where are they gonna go" moving a small business is a death sentence in general. IP, especially owned by investors, is treated much the same way, as rental property.. Like out-of-touch old landlords, they don't have a clue what they have.
In reality, the discussion was probably: we spent $2.8M, how do we get it back in X months to flip this thing? How much do we raise rates to get 40% margin a "software house" (like business software) should get? Accountants and sales made a number, and gave it to publishers, take-it-or-leave-it.