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[Catalyst]

Say Yamauchi and a few other execs said 'oh screw this, lets buy a damn company', how many could buy Nintendo? I don't know how much money they have but would it be easy for EA, Sony, or Microsoft to buy Nintendo? Please, do tell.

EDIT: For those not paying attention, this is obviously a "me too" thread, however, it's also a good question for any type of future reference of source with those participating .

For my two cents: Microsoft, IBM, EA, and Panasonic are probably the only few companies could possibly buy out Nintendo in the industry. Nintendo's a pretty big company, one of the largest in Japan, If I recall correctly.

 

[MetatronM]

Sony can't buy Nintendo, I don't think (not that they aren't big enough, I just don't think they have THAT much spare cash). EA....ummm....maybe. I'm not entirely certain just how much they've got in the bank, but I would probably lean more towards a no on that one.

Microsoft most certainly can.

This is, of course, completely ignoring mergers and other alternate forms of corporate takeovers.

 

[Cold Shadow]

Sony can't buy Nintendo, I don't think (not that they aren't big enough, I just don't think they have THAT much spare cash). EA....ummm....maybe. I'm not entirely certain just how much they've got in the bank, but I would probably lean more towards a no on that one.

You say that Sony can't buy nintendo and that there is a possibility that Ea can buy nintendo. There is no phucking way that EA has enough money for that, Sony is WAAY bigger then EA so they might have chance.

 

[john2kx]

i don't think nintendo's for sale, though..

 

[TheGreenGiant]

I think Madonna has enough money to buy Nintendo.

* make that Maverick (her company)

 

[StrikerObi]

I don't think EA could pull it off. Nintendo has a ton of assets in the bank.

 

[Deku Tree]

I think Microsoft is the only company in the videogame industry that could do it.

 

[kitchenmotors]

When you consider their assets and properties, I doubt any company, even Microsoft, could buy Nintendo for what they are actually worth.

 

[tehrik-e-insaaf]

You know there are more ways to control a company then to simply buy them out in cash. Here are some of your options:

1. Merger (two companies of similar size generally)
2. Acquisition (stock)
3. Acquisition (cash)
4. Takeover (control voting shares)
5. Sorry I graduated from B-School in May and can't think of anything else atm.

Nintendo's market cap before the dollar took a free-fall was around 25 billion dollars. Right now I think they are well under that (somewhere around 15 billion). That still makes them more valuable than many companies. I think should a buyout offer ever come up to the plate, the price premium would be higher due to the perceived undervaluation of the stock.

To answer your question: anyone from Google to American Express could buy out Nintendo if their offer was good enough and the majority of shareholders consented.

 

[olimario]

Who would want to buy a sinking ship?

 

[Ranger X]

What the fuck people? If Sony can't buy Nintendo, you can be rest assured that Microsoft can't. Bill Gates is much much bigger himself than his Microsoft. People tend to mix Bill Gates cash and Microsoft power. Sony is a much bigger entity than Microsoft as a whole. Don't forget that Sony = Sony computer entertainement, Sony music and Sony electronics. If they need money for one side or another, there's no problem.
The thing is, i doubt Sony would invest that much in their entertainement division as buying Nintendo. They must not see this as something profitable.
But just to answer the question, in theory, Sony can buy Nintendo.

 

[Deku Tree]

What the fuck people? If Sony can't buy Nintendo, you can be rest assured that Microsoft can't. Bill Gates is much much bigger himself than his Microsoft. People tend to mix Bill Gates cash and Microsoft power. Sony is a much bigger entity than Microsoft as a whole. Don't forget that Sony = Sony computer entertainement, Sony music and Sony electronics. If they need money for one side or another, there's no problem.
The thing is, i doubt Sony would invest that much in their entertainement division as buying Nintendo. They must not see this as something profitable.
But just to answer the question, in theory, Sony can buy Nintendo.

Yes, but Microsoft is very much more liquid than Sony. Sony is bigger, but do they have the resources to spend or is too much of their investment capital tied up elsewher? And Bill Gates is still the head of Microsoft, so his money matters too. Besides it doesn't really matter because I think Nintendo is currently "purchase proof" unless one of their big executives decides to sell out.

 

[puck1337]

What the fuck people? If Sony can't buy Nintendo, you can be rest assured that Microsoft can't. Bill Gates is much much bigger himself than his Microsoft. People tend to mix Bill Gates cash and Microsoft power. Sony is a much bigger entity than Microsoft as a whole. Don't forget that Sony = Sony computer entertainement, Sony music and Sony electronics. If they need money for one side or another, there's no problem.
The thing is, i doubt Sony would invest that much in their entertainement division as buying Nintendo. They must not see this as something profitable.
But just to answer the question, in theory, Sony can buy Nintendo.

Are you kidding? Microsoft could probably buy Nintendo with cash, and that's after paying out 50+ billion dollars in dividends over the next 4 years.

 

[Ranger X]

Are you kidding? Microsoft could probably buy Nintendo with cash, and that's after paying out 50+ billion dollars in dividends over the next 4 years.

Well, i was mostly answering to the "Sony can't buy" Nintendo comment. Microsft probably can buy Nintendo. Just pointing that if Sony can't Microsoft can't, garanted.

 

[tehrik-e-insaaf]

Microsoft is worth an insane amount of money more than Sony (310 billion to 32 billion, or around 10x the market cap). Not only that, but Microsoft has excess cash up the wazoo. Sony's inability to purchase a company should not be generalized to include anyone, especially MS.

 

[DarienA]

Too many people in this thread seem to have associated buy with upfront $$

 

[radioheadrule83]

Nintendo are right below EA in terms of publisher value in this industry alone. Before you factor in the most experienced R&D, hardware development side. Their slices of the home console and handheld markets. Their attempt to create a new market for a wi-fi capable, 2 screen, touch screen application device. And EA are not for sale or even considered as such. They might even be worth more than EA on the strength of their franchises. It's not just a case of what does this company have in the bank, or whats it worth in relation to this or that company (which is what people seem to be doing by comparing MS/Sony/Nintendo)... but its also rates of growth, how consistent all their assets and brands are, their selling power. A company like Nintendo would make a buyer literally billions and billions of dollars in it's ownership. Year after year. Decade after decade? It'd have to pay for the pleasure.

You also have to consider what exactly would be for sale. Why would any hardware manufacturer already in this industry have an interest in Nintendo's R&D divisions?

I think mergers are far more likely. Personally I'd love to see Nintendo marry Panasonic.

 

[Cimarron]

Sega could buy Nintendo easily since they went 3rd party.

 

[Renegade]

Sony does not have enough free resources to outright buy Nintendo, but they could easily purchase a majority of Nintendo's stock and pwn a majority of the company, or give Nintendo stock in order for a merger.

Microsoft, of course. In almost every feasable way they could pwn Nintendo.

 

[tehrik-e-insaaf]

A Nintendo and Panasonic merger would be disaster. People need to stop thinking, "WOW A BIG COMPANY LIKE MATSUSHITA AND NINTENDO ROXORS OUR BOXORS," and consider the strategic implications of merger. There is little Matsushita could add to Nintendo and there is little Nintendo could add to Matsushita.

Now GE and Nintendo... that is a different story.

 

[Renegade]

Oh, and Sega could.

Sega-Sammy Holdings, that is.

EA could probably at most control Nintendo.

 

[TekunoRobby]

I remember that Microsoft offered to purchase Nintendo and Nintendo took the offer very seriously way back during the Xbox prelaunch. Hell even Bill Gates himself has expressed interest in purchasing Nintendo. I don't think there's any room for doubt if Microsoft could buy them or not at this point.

 

[NLB2]

Microsoft could purchase Nintendo only if Ninntendo allowed them to. I'm rather sure Nintendo is immune to hostile take over.

 

[radioheadrule83]

A Nintendo and Panasonic merger would be disaster. People need to stop thinking, "WOW A BIG COMPANY LIKE MATSUSHITA AND NINTENDO ROXORS OUR BOXORS," and consider the strategic implications of merger. There is little Matsushita could add to Nintendo and there is little Nintendo could add to Matsushita.

Now GE and Nintendo... that is a different story.

In terms of Matsushita, it would bring an old partner's technology in house (they'd no longer be paying for it) and it would put Nintendo on the policy forums of future major media formats. It would provide the same kind of insider insight into that area that Sony and MS will benefit from with HD-DVD and/or Blu-Ray next gen. There's also a crazy possibility of seeing Nintendo brands on TVs, music and video devices, and vice versa with the Panasonic / Matsuhita name on various types of gaming devices. And the increased likelyhood of hybrids. I am quite fond of Nintendo's stubborness to make anything but game-only machines, but I know a lot of people hate it.

Seeing as Nintendo have voiced interest in maybe doing some animation, I'd love to see them at the very least partner up with major publishers. Maybe this one's a little rediculous, but I think the house that Walt made share a lot in common with the big N. They could also increase their stake in bandai. I think animation, childrens entertainment and toys could be very big for them if done right.

 

[bobafett]

Facts:

- Nintendo has almost 7 billion in cash.
- Nintendo has no debts.
- Nintendo is worth about US$ 15-20 billions.

Only Microsoft can buy Nintendo directly (cash or shares). Sony could, but it would take a dangerous hit in its financial health.

EA could't with its own capital, but a merger or a takeover by swapping shares could be done.

 

[Kiriku]

Who would want to buy a sinking ship?

Well, if it's a ship filled with gold, wouldn't you want to put some plugs in it?

 

[tehrik-e-insaaf]

>>>>In terms of Matsushita, it would bring an old partner's technology in house (they'd no longer be paying for it) and it would put Nintendo on the policy forums of future major media formats. It would provide the same kind of insider insight into that area that Sony and MS will benefit from with HD-DVD and/or Blu-Ray next gen. There's also a crazy possibility of seeing Nintendo brands on TVs, music and video devices, and vice versa with the Panasonic / Matsuhita name on various types of gaming devices. And the increased likelyhood of hybrids. I am quite fond of Nintendo's stubborness to make anything but game-only machines, but I know a lot of people hate it.

I see your point, but to back up my point, there is little in terms of a quantifiable impact such in-house knowledge would have. Currently Nintendo can shop the market for the best tech deal, with Matsushita, they would be forced to increase R&D costs and expand into other businesses they would not want to be a part of. Second, overexposure of their core brand would understandably hurt their video game focus. In the long-run I think too much internal horizontal expansion would have detrimental effects on the business by spreading their focus too thin. Their current focus on licensing provides them with the most effcient profit.

>>>>Seeing as Nintendo have voiced interest in maybe doing some animation, I'd love to see them at the very least partner up with major publishers. Maybe this one's a little rediculous, but I think the house that Walt made share a lot in common with the big N. They could also increase their stake in bandai. I think animation, childrens entertainment and toys could be very big for them if done right.

Actually animation is a great business even if it has been declining the past few years. The reason why is that knowledge would be very fluid in an animation department, and the brands created on-air can be implemented into video games. Bandai would be a great investment for Nintendo - if (and a big IF) they can figure out how to do it without undermining investor confidence. People are concerned about Bandai's platform focus becoming limited to Nintendo and shortfall in revenue that would occur as a result. Nintendo is not a third-party producer of content but focused on providing content for its own machines. Hence, the problem.

 

[FitzOfRage]

Well, i was mostly answering to the "Sony can't buy" Nintendo comment. Microsft probably can buy Nintendo. Just pointing that if Sony can't Microsoft can't, garanted.

Well no, that's definitely not the case. Sony is a larger company as measured by sales, but in terms of profitability, cash on hand, and market cap, Microsoft is in a much better position.

Last fiscal year, Sony had sales of about $70 billion and made a profit of about $830 million. And as far as having "no problem" getting money from another side of Sony, all of Sony combined has about $8 billion in cash.

In their last fiscal year, Microsoft had about $37 billion in sales, with a profit a little over $8 billion. And they were sitting on $61 billion in cash.

Nintendo has a market valuation around $15 billion, Sony is around $30 billion, and Microsoft is around $300 billion. So theoretically if you were gonig to buy one of them, that's where you might expect the opening bids to start for each.

So the fact that Microsoft can afford to make an acquition does not guarantee Sony can make the same acquisition.

As far as buying Nintendo, if you're talking about a situation where Sony wanted nothing more than to buy Nintendo, and was willing to cripple or get rid of their other businesses, they could probably raise them oney to do it, but it wouldn't be easy (and would leave them in pretty bad shape).

Microsoft is really the only company in the video game market that could afford to buy any other company in the video game market (including Nintendo or Sony) from a financial standpoint relatively easily (even though there are plenty of other practical considerations that would stop them).

 

[Mashing]

Sony does not have enough free resources to outright buy Nintendo, but they could easily purchase a majority of Nintendo's stock and pwn a majority of the company, or give Nintendo stock in order for a merger.

Microsoft, of course. In almost every feasable way they could pwn Nintendo.

You're not going to take over Nitendo by a hostile takeover... Nintendo buy their own shares back to prevent just such a takeover. They'd have to have two or three of their top shareholders sell their entire stakes before that'd happen. Then again Nintendo could have their shares so spread out that 2 or 3% could be a majority stockholder... no idea if this is the case or not.

 

[Firest0rm]

MS offered $21 Billion for Nintendo, isnt that right?

 

[Hitler Stole My Potato]

Nothing can kill the Grimmace.

 

[soundwave05]

Microsoft according to the book "Opening the XBox" offered Nintendo a $25 billion dollar deal which Nintendo looked at and denied.

Fact is, Nintendo would never sell. The company is almost always rated as one of the top Japanese corporations. They always make a profit. They emphasize making profit.

I mean if you had a company like that in your portfolio, you'd be crazy to want to sell it. Nintendo is a sure deal.

And yes, Nintendo has been buying back a lot of their stock. This makes a "hostile takeover" scenario essentially impossible.

Matsushita/Panasonic would probably be a more ideal partner for Nintendo anyway if they needed to go that route. They have just as much money if not more than Sony, but they aren't big enough to swallow Nintendo up whole (like MS is).