Would it be a good idea for Sony to buy Capcom for over $1.1 billion?

According to a former accurate Gaf insider (mortimer) Nintendo paid for it, they even had a Vita version in development at some point.

Mortimer, who was banned for talking nonsense vs official statements, better knowledge and common sense. Yeah no, not this shit again.
 
Personally, it would be only good if they make proper PS4 installments of Monster Hunter (I stepped away from this franchise after having zero growth and sticking to handhelds) and to a lesser extent, Dino Crisis.

Both would be great ways how to NOT make back that 1.1 billion investment, so it won't happen and therefore I couldn't care less about Sony buying Capcom apart from the fact that this money would be better invested somewhere else.
 
They have very few games that would appeal to a western market. 1 billion spent buying them and the additional cost of creating the games based on the IP.. It would be years before they break even. It would be a horrible business decision.
 
If anyone should buy Capcom, it should be Disney. I can see it integrating really well with the other Disney owned franchises.
 
He was banned for speculating in the absence of insider knowledge. But because he was a high profile figure this speculation was creating hardships for the individual and the developer.

His fault was to speculate without disclaimers everywhere that he is speculating while everyone was constantly jerking over insider information and creating news all over games sites.

It was not because he was wrong on insider information.



I am not referring to his accuracy on information. I am saying that there is history of him mixing speculation with facts.

His statement about this "deal" is a safe one, because honestly none of the party is going to come out and confirm or deny it. People trusted this statement because they trusted him.

InFamous vita? He said it was coming. We'll assume that it means it has entered some sort of production based on his word.
But we now know it didn't even proceed beyond pitching stage. The inFamous project didn't started in the first place. Its like saying a sportsman is making his debut game in the next season when he just submitted the application form to join the team.

Just curious, can someone link me to the post of him talking about the vita TV before Sony announced it?
 
Sony regularly publish more games than any other publisher - first party or third party - annually, I'm pretty sure in terms of output volume, SCE is the biggest publisher in the world.
Sure, 100% agree. But some people would like to see more PS Vita games from them, even if the recent PS blog list shows more than 120 games announced to be released for Vita this year.
 
I thought they had roughly around 8 billion in cash?

They have $2 billion in random cash lying around they can EASILY spend on Capcom.

They have like $6 billion in cash equivalents they could convert to cash pretty easily.

They have another $8 billion in marketable securities which they could convert to cash...it would be a bit harder, but they could do it if they felt like it.

They have nearly $11 billion in receivables which will be converted to cash within the fiscal year.

Etc.



My point in saying "Sony has 2 billion in cash lying around" shows how easily Sony could make a $1.1 billion Capcom acquisition if they felt like it.
 
Perhaps something like this could be a long term goal for Sony, after they're done dramatically altering their business model to ditch their current money sink departments and become a video gaming super power, as they should be doing.

Playstation should be central to everything they do from now on, and it pretty much is.
 
Buying Rockstar alone from Take Two would probably be more expensive than buying out the entirety of Take Two Interactive.

Yeah...Rockstar is Take-Two's bread and butter.

The only way to get Rockstar is to pretty much buy out Take-Two itself, which would take a bare minimum of $2.4 billion excluding shareholder premiums.
 
Nope. Signing deals and entering partnerships for their most popular franchises going forward is a much cheaper and sensible alternative
 
Nope. Signing deals and entering partnerships for their most popular franchises going forward is a much cheaper and sensible alternative

For a lot of things this is true, and this thread is a pure speculation anyway (Capcom would sell for more than 1.1 billion right now anyway).

But if a company/studio is on a sustained way down (ala Capcom), a buyout becomes very attractive because you can get full control over assets and IPs for relatively cheaply.

[UPDATE] Forgot to mention that you remove the risk of the company failing, having to exit it's contracts, or just under performing on the titles it releases due to internal struggles.
 
Yeah...Rockstar is Take-Two's bread and butter.

The only way to get Rockstar is to pretty much buy out Take-Two itself, which would take a bare minimum of $2.4 billion excluding shareholder premiums.

2.4b does seem rather low for a company that publishes GTA, their other divisions must be killing all their profitability.
 
2.4b does seem rather low for a company that publishes GTA, their other divisions must be killing all their profitability.

2.4 is just market cap (which would be the cost to buy all outstanding shares at current price). It would sell for significantly more. Probably in the 5 to 10 billion range.

If you could get a buyout which is very remote especially given that GTA is a multi-billion dollar per title generator.
 
2.4 is just market cap (which would be the cost to buy all outstanding shares at current price). It would sell for significantly more. Probably in the 5 to 10 billion range.

If you could get a buyout which is very remote especially given that GTA is a multi-billion dollar per title generator.

I know it's the market cap, but usually when a company's market cap value is lower than some of its assets (like GTA in this instance), it means that the company is either under a lot of debt, or its other divisions are dragging it down, making its stock prices plummet.
 
I know it's the market cap, but usually when a company's market cap value is lower than some of its assets (like GTA in this instance), it means that the company is either under a lot of debt, or its other divisions are dragging it down, making its stock prices plummet.

I think that's part of it. It does have a decent debt (last quarter .5 billion), but has a billion in cash. Its share price has been steadily increasing over the last 2.5 years. Probably from confidence of GTA 5.

It might also be just undervalued or lack of confidence in other properties.
 
Sony can't afford Capcom. They are shutting down and selling parts of themselves just to stay afloat, and their credit is listed as "junk" by almost every major creditor. I hate to say it, but I would be shocked if Sony is still around in 10 years.

I swear I've seen this post minus the capcom part at least once every year for the last 6 years......
 
Just help fund more classics and we're set. I'd love to see Breath of Fire 1 - 3 re-released on PSN for the heck of it. Get people interested in the series.
 
I think if anything, Sony and other big companies would wait for Capcom to collapse and then pick and choose which franchises they want to buy.
 
No, it wouldn't. Half of the 'populair' franchises you mentioned aren't actually populair and have no real value for Sony. Dino Crisis, Mega Man, Breath of Fire and Ghost & Goblins won't do anything in the current landscape and several other franchises have underperformed in recent installments.

Add to that the fact that Sony as a whole isn't really financially stable and you have a recipe for potential disaster. Just securing the exclusives you want and that would actually sell makes a lot more sense, business wise.
 
I don't know if it beats waiting till they go broke and then hiring key personnel or acquiring the desired IPs.

Buying Capcom would make sense if Sony still gave a fuck about handled and if the Vita is any indication they just don't care much.
 
I don't know if it beats waiting till they go broke and then hiring key personnel or acquiring the desired IPs.

Buying Capcom would make sense if Sony still gave a fuck about handled and if the Vita is any indication they just don't care much.

Waiting is never a viable strategy to gain IP.

First, you are always unsure what happens to the IP when the company goes under. It might be sold, or other provisions might grant the IP to somebody else.

Second, you will get into a bidding war over groups of IP or individual IP with no guarantee if obtaining what you want.
 
I'm baffled that people here in the GAF fail to remember that Sony has no extra cash to throw around. One billion dollars is way too much money for Sony to gamble on right now--they simply do not have it.
 
The important bits from post 200:

Love it when people refer to year old financial statements like they still matter. Like Nintendo fans still believing Nintendo is bigger than Sony (in reality they're nearly 3x bigger than Nintendo now). Most of their divisions are returning to profitability.

fEnDpji.png
 
LOL

There is a reason he is banned you know.

He was banned for speculating in the absence of insider knowledge. But because he was a high profile figure this speculation was creating hardships for the individual and the developer.

His fault was to speculate without disclaimers everywhere that he is speculating while everyone was constantly jerking over insider information and creating news all over games sites.

It was not because he was wrong on insider information.
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They have $2 billion in random cash lying around they can EASILY spend on Capcom.

They have like $6 billion in cash equivalents they could convert to cash pretty easily.

They have another $8 billion in marketable securities which they could convert to cash...it would be a bit harder, but they could do it if they felt like it.

They have nearly $11 billion in receivables which will be converted to cash within the fiscal year.

Etc.



My point in saying "Sony has 2 billion in cash lying around" shows how easily Sony could make a $1.1 billion Capcom acquisition if they felt like it.

It's on the same page guys :(
 
I'm baffled that people here in the GAF fail to remember that Sony has no extra cash to throw around. One billion dollars is way too much money for Sony to gamble on right now--they simply do not have it.

Sell Spider-man back to Marvel. Hey it was quoted as a $4B franchise.
 
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